Blockchain is a big part of JP Morgan’s plan to become a leading digital bank, a new study reveals. According to a study by ResearchAndMarkets.com, blockchain ranks top as part of JP Morgan’s digital transformation initiatives which also includes cloud computing and artificial intelligence.
The firm extended its blockchain based payment to 75 banks as part of a plan to keep the business “in-house.” Start-ups like Ripple are threatening to take a huge chunk of the payments transfer market with its cheap and fast blockchain cross-border payment system. Hundreds of banks have already tested Ripple’s platform and the company says it can reduce costs by about 30% and by about 60% when used with XRP, its native token.
JP Morgan has adopted a number of strategies in a bid to stay in the lead. One of them is establishing technology incubators in-house. Another common strategy has been to strike partnerships with fintechs outside the industry.
JP Morgan, a traditional company is obviously trying to stay in step with potentially disruptive tech that has often swept away legacy businesses.
The report indicates the company is spending about $10 billion in 2018 alone on technology with about half of that earmarked for fintech investments.
“As part of its digital transformation roadmap, JPMorgan explores, identifies, evaluates, invests, develops and implements new cutting-edge technologies such as Blockchain, Big Data, Cloud, Artificial Intelligence, and Robotics. We have investigated on how JPMorgan gain access to these latest digital technologies, be it setting up accelerators and incubators, investing and acquiring Fintech start-ups or forming strategic partnerships and collaborations,” a press release announcing the study says.