JPMorgan rolls out new feature to its blockchain network used by 220 banks

22 Apr, 2019
by Richard Allen
JPMorgan rolls out new feature to its blockchain network used by 220 banks

JPMorgan Chase is expanding the use of its blockchain project to include settlement features as it looks to reduce the number of global payment rejected by errors, the Financial Times reports.

The investment banking giant will be rolling out new features for its Interbank Information Network (IIN) which is currently being used by over 220 banks around the world. The technology was designed to quickly address payments that contain errors or get held up for compliance reasons – issued that can take weeks to solve.

John Hunter, head of global clearing at JPMorgan, said the bank has built a new feature that can instantly verify whether a payment is heading to a valid bank account. For the time being, transactions can be rejected days after they were sent because of typos in sort codes, account numbers and addresses.

“Banks straight through processing rates are in the mid-80s to mid-90s. It’s that gap — the 5 to 20 percent of payments — that have to be assessed by operations where we’re trying to alleviate some of that pain,” Hunter told the FT.

The settlement system is expected to go live by Q3 2019 and will allow both domestic and international payments.

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