The American investment bank and financial services holding company, J.P. Morgan Chase & Co announced that it is using blockchain technology to improve funds transfers between banking institutions globally.
The firm includes the payments originating from Taiwan banks to beneficiary banks in other markets.
With the new solution called Confirm, information exchange related to payments has improved and is expected to help reduce the number of rejected or returned transactions caused by mismatched payment details, lowering costs for both the sending and receiving banks.
By taking advantage of “Confirm” a global account information validation application on the Liink by J.P.Morgan partner banking institutions, including banks in Taiwan, will be able to request confirmation of the beneficiary account information.
The banks will also be able to receive responses directly from other participating banks receiving the requests in near-real time.
After the information is validated, the payment may be sent through J.P.Morgan’s global clearing solution PayDirect to route the payment in the most efficient manner.
PayDirect and Confirm offers solutions that are expected improve straight-through processing rates, increase transparency and enhance customers, end to-end payment experience by reducing returns.
Currently twelve banks in Taiwan are under testing , including Taiwan Shin Kong Bank, First Commercial Bank, Taiwan Cooperative Bank, the Shanghai Commercial & Savings Bank, Mega Bank, Taipei Star Bank, CTBC Bank, for money transfers via PayDirect into Indonesia.
The Vice Chairman for Asia Pacific and CEO for Taiwan at J.P. Morgan, Carl Chien, said:
“We are delighted that J.P. Morgan’s leading-edge technology, combined with our global infrastructure, is helping our clients in Taiwan address unique challenges pertaining to cross- border transactions,”
“We have been listening to our clients and will continue to invest in new products and services to meet their needs, as we did in the past 50 years.”
Liink part of the Onyx by J.P. Morgan business unit was launched as a pilot in 2017
