As we noted earlier today, JPMorgan's 2022 investor day confirmed that technology trumps individual human talent when it comes to winning as a bank now. Today's presentation on JPMorgan's corporate and investment bank (CIB) revealed that spending on new tech in the corporate and investment bank will be 10X higher than spending on new bankers this year.
JPMorgan already employs a lot of engineers. Across the bank, there are 40,000 engineers using the platform. Each month, they make 30,000 releases. Their productivity is up 10% on the recent past and, it's expected to increase further still: while JPMorgan invests an additional $3.3bn in technology in the CIB this year, it's also aiming for $1.5bn in efficiency gains from the technology team before 2025.
If you're joining JPMorgan's technology team, which project should you work on? The bank today outlined the following initiatives in its CIB, and the likely beneficiaries of its investments in 2022.
1. Fusion. A cloud-native data platform to provide integrated solutions across the investment lifecycle. Using a modern data catalog and APIs, clients can seamlessly access JPMorgan's internal and third-party data. Fusion provides data management, reporting and analytics solutions across the investment lifecycle.
2. Athena. Athena is the JPMorgan platform providing cross-asset risk, pricing and trade management solutions to clients. It completes billions of risk calculations daily, and has achieved a 30% reduction in risk calculation times and a ~80% reduction in calculation cost per hour. Athena has moved to AWS which allows it to scale servers on demand
3. eTrading platforms. The etrading platform helps clients with electronic execution. Low touch cash equities trading revenues have grown at a CAGR of 12% since 2017. The bank is improving its algorithms with structured datasets.
4.The Capital Connect platform: connect clients, founders and investors for private equity placements
6. Client portals like J.P. Morgan Markets and Access: seamless cash management, research, execution and pricing solutions
7. Graphite. A global real time payments system. JPMorgan has 5.5k engineers working on payments, plus 60+ fintech partnerships embedded in its solutions.
8. Helix. An API-based Merchant Acquiring platform to focus on unified APIs and cloud enablement.
9. GLASS. A platform to provide liquidity and account services such as wallet, virtual accounts, sweeps and pooling
10. Onyx by J.P. Morgan. The blockchain business unit, building innovative platforms like Liink, JPM Coin and Onyx Digital Assets. Onyx Digital Assets is JPMorgan's network for value and assets exchange.
11. Flow Trader. JPMorgan's system for utilizing AI to deliver faster quotes to clients.
12. Fraud Risk Modelling. JPMorgan is using AI to identify fraudulent transactions with AI to reduce losses. It's also leveraging AI/ML to improve operational processes across KYC, reconciliation, fraud and settlements.
Photo by Kelly Sikkema on Unsplash
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