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Agentic AI for financial services has arrived, but before going all in on the emerging technology, financial institutions have multiple considerations to address — including knowing how to get started. More than 80.5% of 3,300 finance and accounting professionals polled said AI-powered tools, like agents and generative AI, could become the standard tools for […]
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JPMorgan Chase’s wealthiest clients will now receive discounts and referrals on services from luxury travel to art restoration.
JPMorgan Private Bank announced on Tuesday that it is offering a new lifestyle program for its wealthy U.S. clients, providing access to services like booking private jets and hiring household staff. Services also include financial reporting programs, bill pay, and bookkeeping.
One service, for example, provides clients free access to Valerie Wilson Travel, a company JPMorgan acquired in 2022, for travel planning and advice. (JPMorgan did not name any other travel companies available through the network, but said that there was a wide range of firms offering exclusive services.) Another exclusive service involves maintaining and selling art collections.
For JPMorgan clients, there is no additional fee to tap into the new services, according to the press release. The new programming is part of a wider industry trend where private banks are expanding beyond traditional investment and financial guidance.
William Sinclair, co-head of J.P. Morgan Private Bank’s Global Family Office Practice, told CNBC that wealthy clients are increasingly seeking more than just financial advice from their advisors, including managing artwork collections and payroll management for household employees.
“There is a growing trend among clients who want our advice outside of traditional wealth management,” Sinclair told the outlet.
JPMorgan CEO Jamie Dimon. Photographer: Patrick Bolger/Bloomberg via Getty Images
Sinclair stated that the most requested services have been private jet travel, bill pay, and requests from business owners to help find health insurance plans for employees.
JPMorgan is also planning to add more features to the lifestyle service as it grows, Emily Margolis, head of JPMorgan Private Bank’s lifestyle services, told CNBC.
“We’re looking at physical security, insurance, more in-depth HR, areas that we see more requests,” Margolis told the outlet.
Related: JPMorgan Will Fire Junior Bankers Over a Common Practice That CEO Jamie Dimon Calls ‘Unethical’
Expanding lifestyle services ties into JPMorgan’s overall strategy to grow as a bank. JPMorgan CEO Jamie Dimon talked about the company’s overarching growth plan and commitment to investments at the bank’s annual Investor Day in May.
“There’s a lot of competition,” he stated at the event. “You have to be prepared every day to make the investment you need to do in your people, your systems, your ops, your culture, and stuff like that to actually win.”
JPMorgan is also the largest U.S. bank with over $4.3 trillion in assets as of March 31. The bank had a market value of over $845 billion at the time of writing.
JPMorgan Chase’s wealthiest clients will now receive discounts and referrals on services from luxury travel to art restoration.
JPMorgan Private Bank announced on Tuesday that it is offering a new lifestyle program for its wealthy U.S. clients, providing access to services like booking private jets and hiring household staff. Services also include financial reporting programs, bill pay, and bookkeeping.
One service, for example, provides clients free access to Valerie Wilson Travel, a company JPMorgan acquired in 2022, for travel planning and advice. (JPMorgan did not name any other travel companies available through the network, but said that there was a wide range of firms offering exclusive services.) Another exclusive service involves maintaining and selling art collections.
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Amid an uncertain future for open banking, varying views on data sharing could pose a setback. JPMorgan, for one, is asking for data sharing companies to pay for access to consumer data, Chief Executive Jamie Dimon said in his annual letter to shareholders in April. According to the Banking Policy Institute, it’s costly for banks […]
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Amid an uncertain future for open banking, varying views on data sharing could pose a setback. JPMorgan, for one, is asking for data sharing companies to pay for access to consumer data, Chief Executive Jamie Dimon said in his annual letter to shareholders in April. According to the Banking Policy Institute, it’s costly for banks […]
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Chase for Business is innovating to meet the evolving needs of its small- to medium-sized business clients, John Frerichs, head of global SMB payments at JPMorgan Chase, told Bank Automation News.
“One of the biggest changes in small business that we are continually adapting to is the need for a digital-centric ecosystem of payments products,” Frerichs said. “Customers want to onboard with Chase once, as seamlessly as possible, and then gain access to multiple payments products across mobile, web browser and physical hardware.”
To keep up with the digital demands of its clients, the bank rolled out its data-driven business decisioning tool, Customer Insights, to nearly 5 million small-business clients at the end of October.
In an interview with Bank Automation News, Frerichs discussed how he approaches demand for innovation through client feedback and what payments trends he is closely monitoring. What follows is an edited version of that conversation.
Bank Automation News: What digital payments trends do you have your eye on as you look ahead to 2025?
John Frerichs: As we head into 2025, the financial sector continues to embrace digitization, and digital payments have become a business staple. I’m keeping my eye on the following:
BAN: When it comes to payments, what are Chase for Business small-business clients most concerned about?
JF: Each month, we closely track what small-business owners are thinking and the big economic factors impacting this. This year, their top concerns have been cash flow, staffing and revenue growth. That’s why Chase has introduced new services to make payments easier. We’ve got tools to help businesses create and send invoices electronically, speed up payments, and gain useful and actionable insights from their payment data.
Running a small business means juggling a lot, from managing operations, to paying employees and tracking inventory. Understanding customer needs is crucial, but making sense of all that payment data can be overwhelming. Determining the where, when and how of collecting insights can be time-consuming and costly.
BAN: Chase for Business has launched several new digital solutions recently. Is there a standout product you helped bring to market?
JF: Within the past year we have rolled out a series of new product innovations — including Tap to Pay, a new Chase Card Reader, a set of new Chase Point of Sale terminals, a digital invoicing tool, faster payment capabilities and payroll partnership with Gusto.
Most recently, Chase for Business expanded access to its Customer Insights tool, now available at no additional cost to nearly 5 million business checking clients. This powerful platform offers simple, actionable insights to help business owners connect with their customers, run their business more efficiently and make smarter strategic decisions.
It provides them with data-backed intelligence to boost marketing, optimize staffing during peak hours and suggest expansion based on their customer location.
BAN: How does Chase for Business stay ahead of small-business owners’ changing needs and expectations? Where does innovation fit in?
JF: We are always thinking about and talking to our customers. For example, we regularly survey small-business owners and use their input to design business solutions that can address their greatest pain points.
We also spend significant amounts of time talking directly to our customers. Chase for Business hosts several events throughout the year that give us the opportunity to hear from hundreds, if not thousands, of small-business customers at once. I also invite small-business customers to our All Hands meetings. We talk to owners about the story of their businesses, what Chase does well as their banking partner and what we could be doing better.
All of this input, as well as our original design and product thinking, serves as the foundation for our innovation agenda.
BAN: As the needs of small-business owners change, how do you lead your team to adapt to changing needs?
JF: Change is a constant, both in the small-business operating environment as well as the internal environment at Chase for Business. We are always thinking of how we can adapt and evolve to serve our customers better.
Leading through change is not a perfect science, but I have a few principles that I consistently use to be as effective as possible. The first principle is to gather and acknowledge the facts in a changing environment — whether those facts paint an unsettling picture or not. Next, I try to create a limited set of priorities that the team can rally around. Simplifying focus increases the likelihood of delivery. Finally, I aim to provide the maximum amount of transparency into how the team is doing through quantifiable metrics. With clear yardsticks, we know where we are hitting the mark for our customers — and where we need to change course.
Register here for early-bird pricing for Bank Automation Summit U.S. 2025, taking place March 3-4 in Nashville, Tenn. View the full event agenda here.
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JPMorgan Chase is providing its Customer Insights tool to nearly 5 million small business clients, offering data and analytics for business decisioning. “Customer Insights anonymizes the information, aggregates millions of transactions and regularly provides small business owners with actionable insights that can be used to make smarter business decisions” and streamline operations, John Frerichs, […]
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Financial education, accessibility and overall inclusion has improved as technology has advanced in the past decade but many consumers remain unbanked or underbanked. The term “unbanked” refers to people who don’t use any financial institution; “underbanked” refers to those with insufficient access to financial services, according to Merriam-Webster. Only 50% of the global population had […]
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Whitney McDonald
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LAS VEGAS — Securities and Exchange Commission Chair Gary Gensler is warning companies against “AI washing” or making false claims about their AI technology use. AI washing refers to companies overstating their AI usage and capabilities to make their products seem more intelligent than they actually are, according to New York City-based law firm Foley […]
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Vaidik Trivedi
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Banks with more than $1 trillion in total assets are developing and deploying AI and generative AI at twice the rate of smaller institutions. Larger financial institutions are able to spend big bucks on AI development, creating a gulf between them and smaller ones, Alexandra Mousavizadeh, chief executive of data analytics company Evident AI, said […]
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JPMorgan Chase expects AI and other new tech to increase employee productivity but remains wary of AI tech companies’ inflated valuations. “Tech valuations, or any valuations, won’t stand these very inflated values,” Chief Executive Jamie Dimon said during the bank’s third-quarter earnings call today. The bank has a significant cash surplus “sitting in the store” […]
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Some financial institutions are decreasing their branch footprint as bank clients increasingly adopt digital offerings while Bank of America and JPMorgan are investing in their branch capabilities to meet evolving client needs. The case for expanding branch networks lies in evolving customer preferences, the role of the branch and tailored solutions, Joe Myers, executive vice […]
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Financial institution leaders have prioritized innovation and efficiency efforts in 2024 while navigating continually evolving technologies.
This year, bank executives have been tasked with keeping up with generative AI and boosting their cybersecurity efforts in a fraud-ridden environment. And they have done so while maintaining compliance as they await impending regulations.
The year has required a balancing act — and banks have stepped up to the challenge.
Bank Automation News presents 11 bank technology executives who we expect to lead innovation in 2025.
Rohit Dhawan is the first to take on the director of AI role at Lloyds Banking Group. He is responsible for scaling Lloyds’s AI capabilities throughout operations while leading its new AI Centre of Excellence.
Dhawan’s appointment is part of the bank’s efforts to accelerate use of digital technologies and data to improve the overall customer experience, according to an Aug. 5 Lloyds release. This year, the bank also added 1,500 technology and data specialists to support these tech-driven efforts.
London-based Lloyds Bank has been using AI to streamline operations and aims to save $901 million in 2024 through tech and AI deployment, according to the bank’s second-quarter earnings report. The $1.1 trillion bank reported that it has nearly 800 AI use cases it plans to deploy in the coming quarters.
Before joining Lloyds, Dhawan served as head of data and AI strategy across the Asia-Pacific region at Amazon Web Services.
Ian Eslick returned to his tech roots in August when he began work at $27 billion digital lender SoFi, leaving his role at U.S. Bank.
SoFi, one of the largest online lenders for student and unsecured lending, is investing in its product pipeline, especially in a lower rate environment, Chief Executive Anthony Noto said earlier this month at Goldman Sachs Communacopia & Technology Conference 2024, noting that SoFi wants to launch more core products in financial services.
Eslick joins the SoFi team with an innovative and entrepreneurial background. Before his U.S. Bank stint, he founded multiple startups including health care company Vital Labs and data and analytics company Compass Labs, which has raised more than $12 million since its inception, according to Crunchbase.
Steve Hagerman will join Truist Financial as its CIO in October from Wells Fargo, where he served as CIO for consumer technology since April 2023.
Hagerman was the “right person at the right time for our enterprise technology team,” a Truist spokesperson previously told BAN, noting that selecting a new CIO was a “thorough process.”
His move to the $511 billion Truist follows turbulence on the bank’s leadership team as the bank lost multiple executives in the past year, including former CIO Scott Case, who Hagerman will replace.
“Steve brings 25 years of broad technology experience in the financial services industry to Truist and will be a key driver in our efforts going forward,” CEO Bill Rogers said during Barclays Financial Services Conference earlier this month, noting that the bank is investing in its digital products with efficiency at the forefront.
At Wells Fargo, Hagerman has his hand in the bank’s multi-cloud strategy, approach to generative AI, and AI and machine learning efforts.
Based on his experience, Hagerman is expected to “accelerate how we think about our go-to-market strategy,” Sherry Graziano, head of digital, client experience, and marketing at Truist, told BAN.
Tracy Kerrins is leading generative AI efforts as Wells Fargo prioritizes bankwide efficiency efforts.
At the $1.7 trillion bank, Kerrins will identify how AI can be deployed in each area of business, CEO Charlie Scharf said in a July 30 Wells Fargo release.
“Generative AI can help us transform our businesses, improve our customer and client experiences, and enhance the way we work,” he said, noting that Kerrins has experience deploying technology and modernizing operations.
As Kerrins takes on generative AI, the bank has established its own generative AI council to ensure it approaches the technology responsibly.
Prior to her July appointment, Kerrins was the bank’s CIO for consumer technology and enterprise functions, according to the release.
The $40 billion, Jacksonville, Fla.-based EverBank is undergoing a digital overhaul during a two-year window led by COO Lindsay Lawrence.
Lawrence is looking to third-party vendors to update manual processes, improve the consumer banking platform and implement an API-first strategy at the regional bank.
Over the next year, the bank plans to continue its modernization strategy with fintech partners including fraud prevention software from Actimize, FIS’ consumer platform Digital One and payment processing system Finzly, Lawrence previously told BAN.
Don Muir, of fintech Arc, plans to expand operations in the United Kingdom and the European Union. The fintech currently provides banking and financial services to small- and medium-sized businesses in the United States.
The fintech recorded 12 times growth in loan origination after the Silicon Valley Bank collapse in March 2023. The banking crisis “was really the catalyst and the inflection point for our business and things haven’t slowed down since that,” Muir told BAN.
Founded in 2021, Arc has raised a total of $181 million in funding from Left Lane Capital, Atalaya Capital and others, according to Crunchbase.
Sathish Muthukrishnan joined Ally in 2020 as CIO after more than a decade at American Express. At Ally, he has been tasked with developing and deploying AI products and strategies for the $181 billion bank.
Under Muthukrishnan’s leadership, Ally has deployed AI within customer relations and marketing, with the aim of launching one new gen AI feature each month until the end of 2024.
To ensure an ethical approach to gen AI, the bank recently joined the Responsible AI Institute as its first U.S. bank member, according to the institute’s Sept. 18 release.
“Joining the Responsible AI Institute shows our commitment to continue advocating for high standards in the use of AI while also thoughtfully leveraging its potential services,” Muthukrishnan said in the release.
As CPO of business banking, Shruti Patel is responsible for delivering an integrated product strategy that connects banking, payments and software for business clients with up to $25 million in revenue.
Under Patel’s leadership, the $657 billion U.S. Bank is developing new technologies, such as AI-driven financial insights for SMBs along with faster and automated payment channels to manage finances.
Before joining U.S. Bank, Patel served as head of global product partnerships and monetization at Shopify and as head of embedded payments and partnerships at JPMorgan Chase.
Carl Slabicki, of BNY Treasury Services, is tasked with keeping up with global payments trends.
Slabicki’s team is responsible for innovating to bridge instant payment capabilities across networks through BNY’s smart routing solution , he told BAN.
The automated smart routing solution determines which payments rail is used for a given transaction. The $428 billion BNY is working to add capabilities to the router to keep up with the global demand for payments rails, he said.
Small businesses are looking to their financial institutions to provide digital solutions that will help them keep up with evolving market needs and Jameson Troutman, of $3.9 trillion JPMorgan Chase, is closely monitoring small business trends to innovate based on specific needs within his business unit, he told BAN.
To remain current on digital demands from small business clients, Chase for Business, under Troutman, has recently launched the following products:
Troutman joined JPMorgan in 2002 as an analyst in the private bank and held roles within Chase Card Services and the Agile Product Office before moving into his current role, according to LinkedIn.
Jess Turner, of Mastercard, is focused on driving the global adoption of open banking.
Open banking applications are on the rise globally. In fact, by 2028 the market value of open banking is expected to reach $75.4 billion, up from $24.7 billion in 2023, according to the Business Research Company.
To boost adoption, especially in the U.S. where the market awaits a decision on the Consumer Financial Protection Bureau’s 1033 ruling, Mastercard is tapping AI and open banking for transaction monitoring, data standardization, and fraud and security efforts, Turner told BAN.
While Turner aims to drive adoption, she recognizes there is hesitation around open banking and is working to educate financial institutions about its benefits including improved access to data and capital through secure APIs.
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U.S. banks have reportedly gained a $1 trillion windfall due to the Federal Reserve’s prolonged period of high interest rates.
What Happened: The Federal Reserve maintained elevated interest rates for two and a half years, allowing banks to earn higher yields on deposits held at the Fed. However, many banks did not pass these higher rates on to their savers, the Financial Times reported on Monday.
At the end of the second quarter, the average U.S. bank paid depositors an annual interest rate of just 2.2%, significantly lower than the Fed’s 5.5% overnight rate. This discrepancy resulted in $1.1 trillion in excess interest revenue for banks, according to the Financial Times.
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Large banks like JPMorgan Chase and Bank of America paid even less, with annual deposit costs of 1.5% and 1.7%, respectively. The Fed’s recent rate cut by half a percentage point may allow banks to reduce deposit costs further, according to Chris McGratty of KBW.
While some banks, including Citi, plan to adjust rates for high-net-worth clients in line with the Fed’s cuts, others may vary in their approach. The Financial Times noted that this situation contrasts with Europe, where some governments imposed windfall taxes on banks benefiting from higher rates.
See Also: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
JPMorgan Chase, Citi and Bank of America have yet to respond to the queries by Benzinga.
Why It Matters: The Federal Reserve’s recent decision to cut interest rates by 50 basis points in September, lowering the target range to 4.75%-5%, has significant implications. This bold move, which defied economists’ predictions of a modest 25-basis-point reduction, was aimed at sustaining the labor market. Fed Chair Jerome Powell emphasized the importance of acting preemptively to maintain robust employment levels.
Trending: During market downturns, investors are learning that unlike equities, these high-yield real estate notes that pay 7.5% – 9% are protected by resilient assets, buffering against losses.
Additionally, the performance of the S&P 500 following the Federal Reserve’s rate cuts hinges on whether the economy is in a recession. Historical data reveals a sharp contrast in how equities react to rate cuts during recessions compared to other economic phases. During recessionary periods, stock markets typically experienced meaningful declines after the Fed’s initial rate cut. In contrast, during “growth scares” or “normalization” periods, equities have rallied strongly.
The Federal Reserve’s decision to cut interest rates by 0.5% may also pull investors away from money market funds and into longer-duration bonds. Total money market fund assets decreased by $20.02 billion to $6.30 trillion for the week ending on September 18. Among taxable money market funds, government funds decreased by $18.82 billion and prime funds decreased by $2.42 billion.
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Photo courtesy of the Federal Reserve.
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This article JPMorgan, BOfA And Other US Banks Reportedly Reap $1 Trillion Windfall From Fed’s High Interest Rates originally appeared on Benzinga.com
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Bernie Sanders, the famously anti-billionaire senator of Vermont, and Bill Gates, the world’s seventh wealthiest person with an estimated net worth of $138.5 billion, make an unlikely pairing—especially when it comes to debating income inequality. Despite their differences, the duo sat down together to discuss wealth and taxation for the latest episode of Gates’ new Netflix series What’s Next? The Future with Bill Gates.
“Several of my friends raised an eyebrow when I told them I was going to meet with him,” said Gates in a blog post on Wednesday (Sept. 18) discussing his meeting with Sanders and the show, which aired the same day. “After all, Sen. Sanders is the first U.S. Senator in history to go on record saying that billionaires shouldn’t exist,” he added.
Sanders maintained this stance during their discussion, calling the existence of ultra-wealthy individuals “unacceptable” and “obscene.” Gates, meanwhile, suggested that billionaires should voluntarily donate their wealth but disagreed on outlawing them altogether. “But again, I’m biased,” conceded the Microsoft (MSFT) co-founder. Gates, who has given away some $77.6 billion via the Gates Foundation, has long been a champion for billionaire philanthropy and in 2010 helped create the Giving Pledge, a campaign that urges the ultra-wealthy to donate the majority of their wealth.
Despite their different stances on banning billionaires, both Gates and Sanders are advocates for higher taxes on the rich. “I’m amazed that the rich aren’t taxed substantially more than they are,” said Gates during the episode. “If you raise taxes a fair bit, there should be enough to somewhat raise the social safety net, which is not as well-funded as I would make it,” he added. The centibillionaire said his ideal tax system would leave the wealthy with a third of their current fortunes, which would give Gates around $46 billion given his current fortune. Sanders, meanwhile, said he “would go a lot further.”
Gates’ comments echo statements he made earlier this month in an interview with The Independent, where he voiced his desire for more progressive tax policies. “If I designed the tax system, I would be tens of billions of dollars poorer than I am,” he told the outlet.
In a 2019 blog post, Gates suggested increasing taxes on large investments by the wealthy and urged the U.S. government to raise the capital gains tax to equal taxes on labor. While those relying on salary and hourly work are taxed at a maximum of 37 percent, “the wealthiest generally only get a tiny percentage of their income from a salary; most of it comes from profits on investments, such as stock or real estate, taxed at 20 percent if they’re held for more than a year,” he said.
During his discussion with Gates, Sanders pointed to a similar idea proposed by Warren Buffett in 2011 when he criticized the fact that he was taxed less than his employees. “That is not what the American people want to see,” said the senator.
Earlier this year, JPMorgan Chase (JPM)’s Jamie Dimon—estimated to be worth $2.3 billion—said that higher taxes on the rich would help the nation bring its debt down while increasing economic spending and growth. “You would maybe just raise taxes a bit, like the Warren Buffett-type of rule,” Dimon told PBS, referring to a tax rule borne out of Buffett’s comments that dictates no households earning more than $1 million annually should pay a smaller share of their income in taxes than middle-class families.
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JPMorgan Chase & Co. is in discussions with Apple Inc. about taking over a credit card portfolio that rival Goldman Sachs Group Inc. has been trying to ditch. The biggest US bank is among a slew of credit-card issuers that have explored taking over the Apple card, according to a person familiar with the matter. […]
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As JPMorgan Chase leans into AI-driven products, Jameson Troutman, head of product for small business, is dedicated to innovating based on client need.
To determine where to invest, Troutman consults the bank’s monthly survey of 500 small business owners to track their needs amid evolving market conditions, Troutman told Bank Automation News. Some of the biggest pain points small business owners expressed this summer were:
“These needs guide our product innovation strategy,” he said during a recent interview with BAN.
Troutman discussed his approach to innovation, recent product launches he has worked on and how he leads his team with client need at the forefront. What follows is an edited version of that conversation.
Bank Automation News: How does your team approach the product pipeline?
Jameson Troutman: At Chase for Business, we rely on customer and employee feedback to address small business owners’ pain points and identify the most impactful initiatives that will help them grow their businesses. With a focus on robust, agile roadmap planning and prioritization, we gather feedback from internal stakeholders, speak with customers and prospects, and look at the data we are seeing on complaints, digital engagement/usage and call center reasons to make informed decisions on priorities.
Lastly, sometimes we need to prioritize items for risk or control reasons. We reevaluate our priorities regularly to ensure the market hasn’t shifted in a way that requires us to adjust.
BAN: What are recent products that have launched under your leadership:
JT: Faster payments: A recently launched online payment center that gives business owners the flexibility to choose different payment options to pay vendors and employees quickly.
Invoicing: A digital invoicing solution that gives small businesses an easier way to create invoices and bill their customers so they can get paid faster.
Customer Insights: A powerful business intelligence platform that provides simple, actionable insights to help business owners more effectively reach their customers, run more efficiently and make strategic decisions. With Customer Insights, Chase for Business customers will have complimentary access to aggregated, anonymized data about businesses like theirs, such as average customer profile, average ticket amount and busiest shopping times.
Payroll: A solution for our Chase Payment Solutions customers that allows them to automate and simplify the way they pay their employees, giving them time back in their day.
BAN: Where is innovation most necessary for small business clients today?
JT: Small businesses are currently navigating the higher costs of doing business — whether they pass them along to consumers, cut costs within their business, or reduce their business expenses. Innovation is key to helping small businesses tackle these challenges and keeping them thriving in the ever-changing economic landscape.
Cash-flow management remains a critical area of focus but small business owners are also learning how to adapt to new digital technologies, such as artificial intelligence, and figuring out what works for their business.
From another recent survey we conducted, AI was described as the most popular technology to add in the next year. Our recent Business Leaders Outlook survey found that AI applications (48%), cryptocurrency (30%) and virtual reality/Metaverse (25%) are the top technologies small business owners plan to adopt. New technologies, especially AI, will be a game-changer for business owners — saving time, reducing costs and improving efficiency.
From what we’ve seen, technology and artificial intelligence is here, and it’s here to stay. We expect it will have a great impact on the services we provide as a bank.
BAN: How long does it take to get a product from idea to launch?
JT: Our innovation timeline can vary greatly based on a number of factors — from a few months to a few quarters — based on the complexity of the build and the impact it has on our business operations. We strive to be as quick as possible to market, but given we serve over 6 million small businesses, we also need to ensure that when we launch something, it is going to work well and do the job that our customers need it to do.
As part of this evaluation of speed to market, we will decide whether we need to test the feature with a smaller set of customers before we make it generally available to a majority of customers. For some smaller changes, we may be okay with launching it to everybody right away. For larger product launches, we follow a rigorous process that lets us test the product with a small set of customers first. Then, we slowly ramp up the roll-out to ensure our banker and operational teams are ready to properly support the launch.
BAN: How would you describe your leadership style?
JT: I am a people-oriented leader who mentors my teams to understand the “why” behind what we are doing. I enjoy coaching and helping individuals on my team succeed at their job and in their career. It’s in my DNA to really enjoy being in the details of the work, but I give my team the space and time to do proper discovery, understand the facts and define requirements. I trust them to deliver best-in-class products.
Register for the complimentary webinar presented by Bank Automation News: “The future of open banking: Payments meet data,” on Tuesday, Sept. 17, at 11 a.m. ET. Register for the webinar here.
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Chase customers claimed to have identified a glitch in Chase ATMs during Labor Day weekend, allowing them to deposit false checks and withdraw large sums of cash from accounts potentially without the funds to cover the withdrawals. This past weekend, Chase clients took to TikTok to share “the glitch” in the $3.8 trillion bank’s system. […]
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JPMorgan Chase will expand the accessibility of its data-driven business intelligence platform, Chase Customer Insights, to meet the demands of business clients. “Customer Insights is currently available to Chase Payment Solutions clients and will become available to all Chase for Business clients later this year,” Deb Lawrence, managing director of community business strategies and government […]
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J.P. Morgan is joining French payments network Cartes Bancaires, Mike Lozanoff, managing director and global head of merchant services at J.P. Morgan, tells Bank Automation News on this episode of “The Buzz” podcast.
The bank is tapping cloud-based Renovite to build the connection to the network, Lozanoff says. The bank acquired Renovite in 2022 and is using the cloud-based solution and its team to build the tech, he says.
“We’ll be the first American bank actually part of the French banking system, where we’ll be registered and able to offer that card type directly in France,” he says.
Cartes Bancaires is “favorable to merchants” as a network as the cost of payment is low, Lozanoff says. The bank plans to have the card offering available by 2025.
Listen as Lozanoff discusses updates to JPM’s merchant acquiring business, including international efforts, e-commerce innovation and in-store offerings.
Early-bird registration is now available for the inaugural Bank Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.
The following is a transcript generated by AI technology that has been lightly edited but still contains errors.
Whitney McDonald 10:09:05
Music, hello and welcome to The Buzz a bank automation news podcast. This episode of The buzz is brought to you by bank automation summit Europe 2024 which takes place October 7 and eighth in Frankfurt, Germany. This event is tailored to resonate with financial services professionals focused on business optimization through technology and automation learn how to overcome implementation challenges by hearing first hand from C level executives from institutions including JP Morgan, Barclays, Starling bank and more. There’s no better place to get a read on the competition than at Bank automation summit Europe 2024 on October 7 and eighth. Register now at Bank automation summit.com my name is Whitney McDonald and I’m the editor of bank automation News. Today is August 20, 2024 joining me from JP Morgan is Mike lozenov. He is here to discuss his global efforts in the merchant acquiring business at JP Morgan, including tapping into a French network and boosting in store services. Thanks for joining us, Mike
Mike Lozanoff 10:10:01
first. Thanks Whitney, for having me on I’m excited to be here with you today. I have a little bit of unique story. Probably, in this day and age, I started my career out of college with JP Morgan, I guess it was bank one, and there were mergers along the way. And I spent, like, the first 12 years in engineering in our credit card issuing business, you know, from working second shift as a as an operator, to writing code in our card issuing business, and then moved over to our Merchant acquiring team about eight years ago, and now have run a lot of the engineering platforms for our card issuing and merchant acquiring so I got, like, a deep engineering background, but over the last five years, got the chance to run product and engineering for our enterprise business, and then recently, just was elevated to be the global head of merchant services for JP Morgan. So that remit includes leading the strategy and execution and full PNL accountability of our business here that provides merchant acquiring solutions to some of the largest global clients, and then also small businesses through our Chase branch network.
Whitney McDonald 10:11:09
Great. Well, thank you again for being here with your background in engineering and then, of course, leadership as well. You have a great kind of combination of background here that I’m sure helps you with innovation. So before we get into new technology and what you’re focused on right now. Maybe you could tell me a little bit about who you’re leading, what your team is made up of, and kind of give us a little glimpse into what your team looks like.
Mike Lozanoff 10:11:32
Sure, sure. So, you know, we have being a global merchant acquire we have a team that focuses on international markets, and I have a team there focused on on our gear up and Asia. We have teams in the US that are focused on our small business distribution and the solutions there, as well as our enterprise segment, which can be quite complex in enterprise payments, whether you’re selling directly to the largest retailers on the planet or distributing to partners and payment service providers that you know, offer their services as an intermediary. You know you have to manage those relationships, and many of them have relationships with the bank. So quite have to navigate that. Quite complex from time to time, teams focused on commercial sales. So how do we get the product and how we want to sell it? How do we want to price it? We talk to clients about it, a team very much focused on that. And then a team that gets a lot of work these days is focused on our payment networks and government relations. A lot can a lot can happen in this industry and regulation differs by by country and region. And so need to have a team there that also focuses on that. And then obviously, you know, my my comfort in engineering, I have that team as all as well focused. But of late, that’s kind of where I grew up and have a comfort zone. So I’m getting to learn a lot more of the business side, which actually has me really invigorated.
Whitney McDonald 10:12:57
Yeah, I’m sure that there is never a dull moment from the innovation to keeping up with client needs, and then the regulation piece of the puzzle, I’m sure, is just the the cherry on top, trying to bail it absolutely. Um, well, when it comes to what you’re working on, what you’re innovating, maybe you could give us a little insight into what you’re focused on right now. How’s the merchant, acquiring business evolving? What are you focused on? What are the client needs? And how do you kind of innovate around that. What’s the focus?
Mike Lozanoff 10:13:25
No, so we’ve one of the things we’ve been we’re a long standing merchant acquirer, operated under the brand, and many of our clients, you know, still use the brand payment tech. That’s what our contracts still state. And, you know, being a long term processor, you have to reinvent yourself from time to time, and we’ve been doing that now over the last few years, putting a lot of money into the platform and re skinning our offering as a commerce solution. And we have that out there where we’re really going deep into our API and digital channels. Clients need different things in today’s day and age, and how fast they need to get up and operating their. Speed of access to data and giving it to them in a form factor that is more modern has been a big investment area for us. We’re also going into it a little bit deeper into in store payments. We’ve been a strength player in E commerce and, you know, in online and online store recurring payments, but getting deeper as a bank processor in the in store, payments is a big investment for us. There’s there’s still a tremendous amount of spend in store, even though most of us, you know, may shop on our phones, but there’s plenty of things that that chat that way you buy online, pick up in store, and the solutions are quite complicated, and retailers like our brand, so they want to do business with us.
Whitney McDonald 10:14:47
Maybe we could take that idea of being a bank processor a step further. What’s the difference between being a bank processor and a payment processor? What’s the benefit there? I know that you kind of just mentioned you have the client interaction piece. Clients are familiar with the JP Morgan brand, but maybe talk through the differences there and the benefits and why that would be the path that merchant takes. Well,
Mike Lozanoff 10:15:09
I think it’s whether it’s a benefit or how you want to frame it. The thing I think is unique with us is, you know, it’s our brand, our systems, our engineers, our service all running it. We don’t outsource any of that relationship to a third party. We don’t white label someone else’s technology. It’s all us. And I think a little bit that the sales team differentiation there is, right when you have a problem, we stand behind it, and our companies been around for a long time, and will, will weather any storm. So I think one that’s a good point of just trust, right there a trusted name, a trusted brand, and we’re going to put, you know, the firm’s reputation behind anything we put in market. At times, it can also be a tough thing, because the firm reputation or brand can be used against you. So I would like to say payments is a very passionate topic. When companies have any issue, they like to leverage their firm, wide relationship against us, so that there’s always a good side and a bad side to to what you have as a being a processor,
Whitney McDonald 10:16:12
yeah, but I like what you said there about owning the whole journey. You’re not outsourcing any of it. I mean, we do a lot of coverage, and we see all the time, there’s different partnerships. There’s different someone owns this part of the journey. Someone owns this, who owns this part? And if there’s issues with the payment, it can kind of get a little bit messy. So having it all in house allows for that to all be in one place. You know, you’re, you’re responsible for the whole journey. When things are going great, or if there’s a hiccup, you can,
Mike Lozanoff 10:16:41
yeah, absolutely. And it is. It’s a complex thing. I think the the item I’ve, I’ve learned more as I speak with retailers or large clients, is, you know, they aren’t, they aren’t payments experts or transaction experts, right? They just want to run their business. So the more we can bring solutions to them that are, are more comprehensive, is something that they’re they’re listening to. And again, if you have one person or one team to call, and the thing I’ve seen is, what’s kept me at JP Morgan for so long, you know, if there is an issue, we swarm to it and we’ll fix it. And that’s the thing, I think, that’s, you know, also resonates with clients that have a long standing relationships. They know we’ll be there.
Whitney McDonald 10:17:21
Now, speaking of having the the ability to problem solve. You’ve been at JP Morgan a long time. You’ve seen the different, I don’t know, the different innovations come out. You’ve seen how the journey has evolved at JP Morgan, just from being on the different teams that you have been on. But maybe you can talk us through a little bit of some projects that you’ve been involved with as of late. What solutions are you bringing to market? What are you working on? What are you investing in to kind of meet some of that client need Sure.
Mike Lozanoff 10:17:49
Let’s see where to start. I think some of the things that are most interesting lately, we spent a lot of time just keeping up with the regulation and ongoing payment reg. But that’s not the coolest stuff. I think the newer things now are one. I’m excited about how we’ve been digitizing our business and then taking a lot of insights and data assets that we have where we can see one of the other advantages of being a major bank processor. We have a huge consumer set of data. How are all the chase customers that have credit cards or debit cards, spending their money, even if they don’t process with us, we have access to look at these kinds of things and help clients see how they may be comparing their spend against other demographic customers in that same segment. Or the example I like to use is maybe helping small businesses, where we can present them as a comparison tool that, and I think we call client Insights, where we say, let’s say you’re a barber shop and you want to open a second location. Well, where are others spending money in different geographic regions around you? And can even help you understand where you may want to open your next door. These are different things. Things that we’re using to able to use data to help give clients the ability to grow their business. The other one, I see that we’re having to really challenge ourselves about not just being part of the transaction flow, but of the client’s journey. So the more we’re getting able to spend in areas around helping them take other parts of their business, whether that’s payroll and building a payroll service that’s integrated for our small business solution, or giving them something to help them with their Let’s see your subscription client. We’re putting logic in to say we can help manage your subscription billers, that you be your clients, that you bill or your customers, and if they get declined, we will retry on your behalf and do different things to help you not lose that customer. These are things that used to be just, you know, think things that a client would have to manage, or a customer would manage, and now we’re trying to build software on behalf of them.
Whitney McDonald 10:19:57
Now, one of the things that’s interesting, of course, is the idea behind the data. And of course, you guys have a ton of data that you’re collecting. You just talked through that, but being able to tap the data and those insights, like you said, the geography or comparing spending on the consumer side or small business side, that’s something that’s key right now. Are you seeing increased demand for that from the client base right now? Are they using these solutions? Are they tapping something like consumer insights.
Mike Lozanoff 10:20:24
They are, they are, you know, they get, you know, what you always find when you present a new product or a new insight is, like, you get a little bit of, you know, click through interest in the beginning, and then you have to watch it right. What, you know, what I what I think may be next is, hey, that insight is neat, but now I have to turn that insight into an action. Maybe I can inject a loyalty program or a marketing campaign. I think continuing to pull the what’s next? How will it help the business? Is where we’ll continue to innovate, invest.
Whitney McDonald 10:20:53
I think that’s the perfect segue to the next question, which is, what are you focused on right now? I know that you mentioned this is, this is a global business. You have your teams in Europe, you have the teams in us. You have a global business. You’re keeping up with different regulation. You’re keeping up with different payments, rails and networks. What are you focused on right now? What has your attention for? What has had your attention in recent months and in coming months that you’re focused on and prioritizing?
Mike Lozanoff 10:21:22
An interesting one. Maybe I’ll jump internationally for a bit. We, we did announce being a large European processor as well, where one item we’re doing is we’re building connectivity into a French local network called carp on care. We’ll be the first American bank, actually, part of the French banking system, where we’ll be registered and be able to offer that, that card type in directly in France. And I think it’s, you know, it is, think of it as a local debit network of sorts, like we have in the US. They have that in French, and has large spend on it, as it’s very favorable to merchants, as the cost of that payment is quite low. We’re doing that with some of the newest technology that we’ve built. We acquired a company a few years ago that was a cloud switching technology that we’ve now incorporated into our full platform. The company was called renovate, and we’re doing it with that team so it’s a full cloud solution. It’s weaved into our target commerce platform, and we hope to be selling that in 2025 that’s got a quite a bit of work. We’re also taking some of the best assets we’ve got from really trying to stitch in a strong digital onboarding for small businesses. We did a lot of that, and have had that in different places across our our software stack. We’re really trying to get it all into this commerce platform. So taking all the digital assets and making sure, whether you’re small, medium or large, we have one way in to get to our services, the only one that I think is kind of a need. I mentioned this in store piece. So you know, just coming from, you know, a tech background, what I didn’t always realize, and it’s now ruined shopping for me, being part of a merchant acquiring business, because I go in and I look at the terminal and I wonder who the processor is, but that the complexity of what retailers have to deal with, with that physical in store device, their ERP systems and inventory. So the investment we’re kind of making, and you know, our we’re calling it our omni channel investment, where we’re going to start to own the software applications on these terminals that will work natively with our online online interface will help to take a lot of that friction away from clients. So, you know, that’s one I’m extremely excited about we’re probably a year into software development and some of the product development we’ve been talking about at various different conferences, but I see it really going live in 2025 and that’s going to be a new channel for us, because we’ve always distributed merchant acquiring through a lot of those retailers, and they’ll continue to be. Strategic partners of ours, but we’re also tiptoeing into it ourselves to see, you know, can we play in that market as well,
Whitney McDonald 10:24:10
to own yet another piece of that, that whole, the whole value
Mike Lozanoff 10:24:14
chain and that and that headache for clients, how can we continue to take that and see how we can bring that more and more in house?
Whitney McDonald 10:24:21
Yeah. I mean, that definitely makes sense. So you said hopes for that to go live 2025
Mike Lozanoff 10:24:27
That’s right, we’re actively talking to clients now and building a pipeline, but yeah, we’ll really start to get that brought in North America next year.
Whitney McDonald 10:24:38
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Banks are modernizing and digitalizing their platforms and offerings as users demand more online and mobile banking experiences.
According to Bank Automation News’ proprietary Transactions Dashboard, banks have consistently invested in digital banking solutions since the start of the year.
The Transactions Dashboard has tracked 17 digital banking deals in 2024, including:
The dashboard is an interactive tool that allows readers to digest transactions data in a new way. The proprietary Transactions Dashboard lists the technology selected or acquired by financial institutions. The database, with data going back to 2022 is updated weekly and is available exclusively to Bank Automation News subscribers.
Among top dealmakers on the dashboard are JPMorgan Chase and tech provider Jack Henry.
Since the start of the year, Jack Henry has been selected by:
Thirty-seven of the 69 FIs signed on to Jack Henry’s Banno Business platform during the company’s fiscal third quarter of 2024, which ended March 31, a Jack Henry spokesperson, previously told BAN.
Similarly, JPMorgan bank teamed up with payments technology provider PopID for its biometric payment solution earlier this month and invested an undisclosed amount in French payments network Cartes Bancaires to compete with Visa and Mastercard.
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