JPMorgan confirms payments network extend to 75 banks
JPMorgan has confirmed that 75 banks have joined its new blockchain-powered payment product Interbank Information Network (IIN). Like legacy inter-bank player SWIFT, the new JPMorgan product is aimed squarely at bank-to-bank transfers.
Growing industry support
The network is built on JPMorgan’s Quorom blockchain platform which has been bench-testing the tech since last autumn. The project is also being supported by Royal Bank of Canada and ANZ.
“Payment is one of the segments banks worry most about in terms of ceding to non-bank competition,” Jason Goldberg, banks analyst at JPMorgan told the FT today. “Blockchain is a way to keep more of that (payments business) in-house.”
JPMorgan’s CFO Marianne Lake told Business Insider earlier this year that executing cross-border payments is expensive in terms of compliance research. “Today, payments that are flagged for compliance reasons can be delayed for up to two weeks, but this technology can reduce that to minutes.”
Bottom-line savings could be huge
The banking industry is deep in blockchain trials with considerable collaboration through the R3 network. Last year Santander estimated that blockchain technology could save the industry as much as $20bn a year.
Part of the problem is down to the fact that even basic, simple inter-bank transfers can be complicated when there are limited mutual relationships between parties. This means an extra burden on compliance and basic fact-checking. Very few public blockchain collaborations are currently live.