04 Oct 2018 Josphat Kariuki
New Study reveals That Blockchain Is Part of JPMorgan’s Digital Transformation Roadmap
The study was conducted and released on 3rd October by RM (ReasearchAndMarkets.com).
While conducting the study, RM looked at JPMorgan’s enterprise strategies to get a competitive edge against non-financial firms, fintech startups and rival banks. Reportedly, the bank has set aside $10.8 billion for technological advancement in 2018. Almost half of this amount ($5 billion) will be spent on fintech investments.
The researchers covered JPMorgan’s transformation roadmap and listed blockchain as the number one tool in a set of cutting-edge technologies being pursued by this financial institution. Others included artificial intelligence (AI), big data, robotics and cloud.
The study outlines a host of approaches undertaken by JPMorgan, including forming partnerships and acquiring fintech startups, investing, establishing incubators and accelerators, and walking away from archaic systems to new and disruptive solutions.
According to RM, these strategies come in a bid to transform JPMorgan into a leading digital bank. Moreover, the researchers have given recommendations to other firms in the market to embrace fintech innovation.
Earlier last week, JPMorgan extended its blockchain payment system to over 70 multinational banks. The move came in a bid to combine efforts to stand firm against competition from institutions outside the banking sector. Earlier in April, the bank launched the first tests of the platform with Pfizer Inc, National Bank of Canada and Goldman Sachs.
In August, Lori Beer (JPMorgan’s CIO) predicted that blockchain would obliterate the existing technology in a few years. However, the bank notably avoids the risks involved in cryptocurrencies, with Jamie Dimon (the bank’s CEO) making anti-bitcoin remarks on different occasions. Nevertheless, other senior figures in the company are hinting towards the potential of an open stance regarding the cryptocurrency space.