JPMorgan Takes Bold Steps To Become Digital Bank, Study Reveals
However, the bank has not given any way forward regarding adopting cryptocurrencies.
JPMorgan Pumps Billions Into Blockchain Technology
ResearchAndMarkets.com has released results into a study of JPMorgan’s digital products. The study has highlighted that the bank’s main goal is to explore the blockchain system.
In a press statement, RM stated that it had looked at JPMorgan’s strategy to remain ahead in the market against rivals. The bank is also facing competition from fintench and non-financial firms. Reports indicate that the facility has set aside about $10.8 billion meant for a technological upgrade. This year, JPMorgan has already utilized about $5 billion in fintech ventures.
The bank is exploring blockchain in addition to large data, and the upgraded technological plan has been highlighted in the bank’s digital transformation roadmap.
The roadmap has a number of steps taken by JPMorgan to achieve this target. Among the bank’s strategies is the setting up of accelerators and incubators. The firm has already invested in different fintech ventures. Additionally, JPMorgan is shifting away from legacy platforms to fresh disruptive market solutions.
RM states that the strategies put in place are efforts by the bank to become the front-runner to transform into a digital financial institution. The study also highlights a number of recommendations for other players in the industry. They have been urged to venture into numerous fintech innovations.
Last week, it emerged that the bank had widened its blockchain payment system to more than 75 international banks. The move was a combined initiative by all participants to tackle rivalry from industries outside the financial industry. The firm tested the technology in April this year and Goldman Sachs is one of the banks that took part.
JPMorgan’s Stand On Cryptocurrencies
About two months ago, the bank’s CIO Lori Beer predicted that the blockchain system will take over from the current technology in the next few years. However, JPMorgan has remained cautious when it comes to digital currency. CEO Jamie Dimon has been quoted in the media issuing anti-bitcoin statements. Notably, some top officials from the bank have hinted that JPMorgan might go the crypto way soon.