The bank is expanding its blockchain payments trial by adding additional institutions to its network, hoping to retain customers' business for inter-bank payments and compete with smaller fintech institutions

Blockchain technology has had a significant impact on the way banks are able to do business. Looking to compete with smaller lenders who got in on the ground level of the fintech industry, financial institution JP Morgan Chase collaborated with RBC and ANZ  banks  and is now working with 75 institutions to create its own interbank payment system.

The platform is called the Interbank Information Network and aims to help the banks cut costs and time frame issue associated with payments between banks, while also working to stave off competition. According to Jason Goldberg from JP Morgan, “Payments is an area in which banks are most threatened by non-bank competition,” adding, “Blockchain is a way to keep more of that [business] in-house.”

Furthermore, the trial also plans to address payments that contain errors or are delayed to due compliance issues, challenges that can take weeks to resolve when multiple banks across a payment chain are involved. “We’ve been actively exploring how emerging technologies such as blockchain, AI, and an enhanced digital experience can be deployed…to better serve our clients’ ever changing needs,” says the institution’s Global Head of Treasury Services Takis Georgakopoulos. The platform is still in trial, with plans to expand as more banks join in and add additional currencies to the current USD.

JP Morgan Chase

Blockchain technology has had a significant impact on the way banks are able to do business. Looking to compete with smaller lenders who got in on the ground level of the fintech industry, financial institution JP Morgan Chase collaborated with RBC and ANZ  banks  and is now working with 75 institutions to create its own interbank payment system.

The platform is called the Interbank Information Network and aims to help the banks cut costs and time frame issue associated with payments between banks, while also working to stave off competition. According to Jason Goldberg from JP Morgan, “Payments is an area in which banks are most threatened by non-bank competition,” adding, “Blockchain is a way to keep more of that [business] in-house.”