Tech
This $12 billion tech investment could disrupt the banking industry
There are two types of companies emerging from today’s technological revolution: disruptors and disruptors. JPMorgan Chase is in the midst of a once-in-a-lifetime transformation in the latter.
Silicon Valley may dominate the headlines, but it’s not the only player in the emerging technology game. Being large and well-established can be a burden for many companies, especially in industries that are full of nimble tech startups. But in the world of financial technology, that’s a blessing. Because developing cutting-edge technologies is one thing; building a critical mass of loyal customers and sufficient scale to roll out best-in-class products is another thing entirely.
JPMorgan Chase is already here, with more than 60 million retail customers whose preferences help the company drive innovation and accelerate transformation.
“We have a tremendous amount of opportunity here,” says Larry Feinsmith, managing director and head of global technology strategy, innovation and partnerships at JPMorgan Chase. “While other technology companies have a narrower scope of things they do very well, what differentiates JPMorgan Chase is our ability to invest $12 billion in a broad number of technologies at once. Our size and scale are simply unmatched.”
Feinsmith is referring to the $12 billion investment that JPMorgan Chase spends a year to fuel a team of 50,000 technicians.
Perhaps the most surprising aspect of this epochal change is that it is not new at all: it is part of a continuous corporate evolution. Customers have become accustomed to the fast pace of innovation, and as such, banks like JPMorgan Chase continue to push the boundaries in technology applications.”
Machine learning isn’t just a buzzword
As consumers become accustomed to personalized applications, they begin to expect similar tailored services in other areas of their lives. Large companies, like JPMorgan Chase, are learning from their data to surface the most relevant content, applications or services for their customers.
For example, JP Morgan’s Corporate & Investment Bank uses machine learning to personalize the digital experience of its research platform, JP Morgan Markets. The platform produces more than 10,000 searches a year, but until recently customers didn’t always know the reports existed. Machine learning techniques have solved the problem and now every customer accesses a personalized portal that provides unique and relevant searches, customized to their needs.
Artificial intelligence is here to stay
You can’t lead in any industry without engaging customers, clients and employees in new and unexpected ways, and AI is one of the most powerful tools companies are using to harness this enthusiasm.
JPMorgan Chase is the first major bank to launch an AI-powered virtual assistant that will make it easier for corporate clients to move money around the world, whether it’s for routine payrolls or multimillion-dollar mergers and acquisitions. AI enables a consistent, multi-channel customer service experience that gives consumers the power to ask the virtual assistant for information, such as balances, on demand. Machine learning allows the AI-powered assistant to adapt to customer behavior over time and provide insightful recommendations. If a customer authorizes multiple wires in a given time period, the virtual assistant might say, “It looks like you sent 100 US dollar wires to Singapore. Did you know you can send a foreign currency ACH payment instead? Click here to sign up .”
Eventually, AI-powered virtual assistants will be integrated into all areas of the bank to deliver value to customers. They can also streamline internal operations to save employees time by answering routine questions such as “Was my transaction successful?” and “How do I reset my password?”
Keeping pace with the Blockchain revolution
Blockchain has been at the forefront for several years at the forefront of technologists’ minds. But could it also change the way we interact beyond payments?
“We are actively exploring applications of blockchain technology across all of our lines of business,” says Feinsmith. “We believe blockchain technology can be a game changer in terms of process optimization, improved customer experience and the creation of new revenue streams.”
Feinsmith and JPMorgan Chase have worked on a number of blockchain projects exploring concepts beyond cryptocurrency. One such project is Quorum, an enterprise-focused, Ethereum-based platform built with open source code. The platform combines enterprise-grade software with high-level compliance for processing private transactions. Its rapid adoption by developers has solidified the importance of players like JPMorgan Chase in the blockchain ecosystem.
The future of technology is calling
Technology, especially in consumer-facing businesses like banking, is changing rapidly to meet consumer demands and market trends. Large companies are engaged in an endless cycle of iteration to launch smarter, faster, and easier-to-use apps, virtual assistants, cybersecurity systems, digital platforms, and distributed ledger technologies.
JPMorgan Chase has a clear vision of the future, which is why its engineers work on a variety of other solutions, including mobile and electronic payments, big data, cybersecurity and cloud computing. As a result, the company is now competing with top-tier tech giants for consumer attention and employee talent.
“We are an unexpected disruptor in the banking industry and the technology industry,” Feinsmith said. “Because technology changes so rapidly, we are not only developing today’s technology, but we are also anticipating our consumers’ technology needs for the next five to 10 years.”
Are you interested in helping JPMorgan Chase develop solutions to real-world problems? Find out more about the variety of career opportunities in the technology sector at JPMorgan Chase & Co.