Banking major JPMorgan is expanding the use of its blockchain platform to enhance the time efficiency of payment systems. Besides, the bank is also encouraging the various financial technology platforms to come forward to offer new solutions in order to further expand the use of blockchain in the financial sector. The emphasis is now on expanding the current ambit of blockchain usage within the sector that will further enhance the overall applicability and efficiency of the system.
The blockchain platform developed by JPMorgan is helping organizations across the globe to quickly meet their compliances for achieving greater efficiency in the payment transfer systems. Usually, any delay in compliance fulfillment results in long delays (often run into weeks) before the payment is exchanged between different parties involved in the process. In the year 2018, Interbank Information Network (IIN) – a blockchain platform developed by JP Morgan – has added more than 75 banks to its network. These banks are looking to fight off the challenges posed by various payment startups which are rapidly emerging as a strong contender to the conventional payment transfer system. In addition, the original service proposed by the bank has been signed up by 220 banks which will allow sharing of payment data relating to transactions over one network.
John Hunter, who is heading the position of global clearing at JPMorgan, said that the initial benefits offered by the platform were about the screening of sanctions while the bank is now looking forward to providing more customer benefits payment settlement front. Hunter added that the bank has developed a new application which can verify on the real-time basis that whether the payment transfer is happening into a real account or not. The firm is expecting this new system to be up and running by the third quarter and has high hopes that international payments will be highly benefited by the invention of this technology. As of now, the bank is offering all these services without charging any fee though it is quite possible that in the future, these services will be paid in nature.
IIN is also in a process to set up a sandbox which will enable all the financial technology firms to use the network in order to put out their own applications. With the advent of the sandbox, the organizations will be able to securely share the data models, file transfer, and carry out a number of other allied processes. In fact, this is going to remove a number of challenges and hurdles associated with the ecosystem of data, tooling, and environment. The only thing as a developer that is expected from you is your acumen or intellect. This new feature is also going to be available by the third quarter, according to the organization.