Blockhain Video Transcript
Open Banking Video Transcript
Machine Learning Video Transcript


JPM Treasury: Blockchain

 

On screen:

The video begins an office, with large windows overlooking a city. Two executives - Jason Tiede, a man with short slicked-backed hair and Christine Moy, a woman with long dark hair - sit facing each other in cushioned chairs.

Text on screen:

Jason Tiede. Head of Innovation, Treasury Services, J.P. Morgan.

Christine Moy. Program Lead, Blockchain Center of Excellence, J.P. Morgan.

Christine:

I can remember a time where there wasn't the internet. That was just 20 years ago, right? Sounds like a really long time. But in each of our lifetimes,

that felt like it happened very quickly.

Text on screen:

This is:

 - E-Commerce;

 - APIs;

 - Machine Learning;

 - Payments;

 - Open Banking;

 - Treasury;

 - BLOCKCHAIN.

Presented by J.P. Morgan.

Jason:

As one of the experts in the industry, how do you answer the question, in sort of simple terms, what is blockchain?

Christine:

The easy way to think about a blockchain is that it's a digital ledger.

Text on screen:

Blockchain is a shared digital ledger.

CHARACTERISTICS:

 - Data store of transactions;

 - Distributed network;

 - Cryptology for validation;

 - Consensus driven;

 - Immutable and auditable.

Christine:

If you think of today's world, you have an Excel spreadsheet, you fill in some data. If I want to interact with you, suddenly I have two spreadsheets. And then you add some data to it, you send it back to me and now we have double the number of spreadsheets.

Note:

A four-segment split screen montage briefly appears, showing the interview from different vantage points.

Christine:

And then we have to reconcile our points of views based on who has the most updated spreadsheet. Blockchain is just the next evolution where we can still have that real-time update, still feel like we're working on the same spreadsheet, without requiring a third-party intermediary.

Jason:

Alright, so, it isn't a simple one-liner answer--

Christine:

That was as simple as I can make it.

Jason: (laughs)

Okay, very good. FOMO.

Christine: 

FOMO.

Jason:

FOMO.

Christine:

Fear of missing out.

Jason:

A lot of times that I'm talking to corporate treasurers, they may feel like they're missing out on blockchain. What's your perspective if you were to talk to a set of treasurers and they feel like maybe they're behind?

Christine:

And I think that it's a misconception that everyone needs to have their own blockchain. Not everyone does. I think the important thing to understand about blockchain technology is that it requires a network of participants. No one should be blockchaining by themselves.

Text on screen:

“No one should be blockchaining by themselves.”

Christine:

The power and the potential of blockchain comes from connecting a network of participants to share in, both read and write, data together. It will take some time for it to really come to fruition and normalized in everyday use, but the transformative impact of that can be enormous.

Text on screen:

“It will take some time for it to become normalized in everyday use, but the transformative impact is enormous.”

Christine:

 I would say that from an internet point of view, we're still at the point in time where we thought it was a good idea to just put newspapers on internet browsers and read them on the internet. But obviously, as we know, it has evolved into something much more than that, there's now e-commerce, there's now mobile, and there are things that are happening now enabled by the internet that we never would have imagined 20 years ago.

Jason:

If we think about this from a corporate finance team standpoint, what sort of areas do you see blockchain having applicability and what are some of the use cases?

Christine:

The origins of blockchain, as you know, are with bitcoin. And so, when our blockchain program was started three years ago, obviously, the first use case that we started looking at was payments. But what we found was that the actual mechanism of payments, clearing and settlement in today's cross-border world actually works fine today. What the technology inspired us to do was to really understand when there is cross-border payments slowdown, what is the root cause of that. And we realized that there were obstacles and challenges around the exchange of sanctions screening information that held up the ultimate payment. That led us as the blockchain team to partner with the treasury services team to build a peer-to-peer network of correspondent banks to exchange sanctions screening information. This is called the Interbank Information Network. Basically, we're able to take down a process that takes a couple of days to maybe even two weeks to something like a few minutes.

Jason:

If we take it up a level and think about finance more broadly.

Christine:

One of the use cases that we're really excited about is around using blockchain to optimize the debt issuance and life cycle management handling process. You create the debt instrument and you distribute it, it settles automatically, and then automatically gets serviced by the technology itself. Something that requires redundant processes and calculations can just be streamlined and automated with smart contracts and blockchain.

Jason:

Is there an easy way to give folks an idea of what a smart contract is?

Christine:

First thing to note is that a smart contract is definitely not smart, nor is it a contract. Smart contracts just refers to business logic, executed synchronously across all of the participants on the blockchain network. So actually, if you want to go back to the Excel visualization, you can think about them as just macros. But that doesn't sound that cool. So smart contracts sounds way better.

Jason:

If again, we think about corporate treasury standpoint, if they want to start to embark on engaging more directly, what would you sort of recommend as next steps for them to think about?

Christine:

Yes, I would definitely recommend that corporate treasury teams get educated about the technology I think it's important for them to understand

how this technology may impact their existing business models, or their existing operational processes, where there may be opportunities for new markets or better processes. I think that for some teams that are more enterprising, there's the opportunity to get hands-on experience with blockchain through prototyping a project. The one thing that I would suggest is that you should make sure that when you work on a blockchain project, that the project itself is anchored in trying to solve a very specific problem, or is addressing a very specific pain point.

Text on screen:

GET STARTED:

 - 1. Get educated;

 - 2. Develop appropriate use cases;

 - 3. Experiment;

 - 4. Engage in emerging networks.

Jason:

Well, thank you so much, Christine, for your time today and look forward to talking to you again in the near future.

Christine:

Thank you, thanks for having me.

Text on screen:

J.P. Morgan.

This material was prepared exclusively for the benefit and internal use of the JPMorgan client to whom it is directly addressed (including such client’s subsidiaries, the “Company”) in order to assist the Company in evaluating a possible transaction (or transactions) and does not carry any right of disclosure to any other party.

This material is incomplete without reference to the other briefings provided by JPMorgan. Neither this material nor any of its contents may be disclosed or used for any other purpose without the prior written consent of JPMorgan.

J.P. Morgan, JPMorgan, JPMorgan Chase and Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its subsidiaries worldwide (collectively, “JPMC”). Products or services may be marketed and/or provided by commercial banks such as JPMorgan Chase Bank, N.A., securities or other non-banking affiliates or other JPMC entities.

JPMC contact persons may be employees or officers of any of the foregoing entities and the terms “J.P. Morgan”, “JPMorgan”, “JPMorgan Chase” and “Chase” if and as used herein include as applicable all such employees or officers and/or entities irrespective of marketing name(s) used.

Nothing in this material is a solicitation by JPMC of any product or service which would be unlawful under applicable laws or regulations.

Investments or strategies discussed herein may not be suitable for all investors. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice or investment recommendations. Please consult your own tax, legal, accounting or investment advisor concerning such matters.

Not all products and services are available in all geographic areas. Eligibility for particular products and services is subject to final determination by JPMC and or its affiliates/subsidiaries.

This material does not constitute a commitment by any JPMC entity to extend or arrange credit or to provide any other products or services and JPMorgan reserves the right to withdraw at any time.

All services are subject to applicable laws, regulations, and applicable approvals and notifications. Notwithstanding anything to the contrary, the statements in this material are not intended to be legally binding.

Any products, services, terms or other matters described herein (other than in respect of confidentiality) are subject to the terms of separate legally binding documentation and/or are subject to change without notice.

JPMorgan Chase Bank, N.A. Member FDIC. Deposits with JPMorgan Chase Bank, N.A., Toronto Branch, are not insured by the Canada Deposit Insurance Corporation.

Copyright 2019 JPMorgan Chase & Co.

All Rights Reserved.

END


Collapse Transcript

JPM Treasury: Open Banking

 

On screen:

This video begins an office, with large windows overlooking a city. Two executives - Sairam Rangachari, a man with short black hair and Tammy Petro, a woman with long brown hair - sit facing each other in cushioned chairs.

Text on screen:

Tammy Petro. Executive Director, Treasury Services Innovation, J.P. Morgan.

Sairam Rangachari. Head of Open Banking API Strategy, Treasury Services, J.P. Morgan.

Sairam:

How do we take the experiences to the customers how do we open ourselves up, connect better with the ecosystem, create enhanced value for the customers?

Text on screen:

This is:

 - E-Commerce;

 - APIs;

 - Blockchain;

 - Payments;

 - Machine Learning;

 - Treasury;

 - OPEN BANKING.

Presented by J.P. Morgan.

Tammy:

Sairam, I've heard, that open banking has a lot of acronyms in it, API's, PSD2. Can you tell me simply what those mean?

Sairam:

Just to start with API's that stands for Application Programing Interfaces. What it really means is a way for two systems to talk to each other and a set of rules and protocols that govern that communication between the two systems. PSD2 is a specific directive from European Union and UK aimed at making banks open up and allowing them to give access to third party

providers to support innovation in the market.

Text on screen:

API: A way for two systems to talk to each other and a set of rules and protocols that govern communication

Tammy:

What are some of the benefits to opening that up?

Sairam:

I mean if you think about us as a user, we don't want a disjointed experience in anything we do. When you take the flight and you want to know the traffic to get to the airport comes from the Google Maps of the world and the airline information itself comes from the airlines and the airports. So this need for an orchestrated, enhanced user experience, that is driving this whole thing. One of the biggest advantages for API's is the low cost of set up and connectivity. And we have processes optimized to help our customers connect to those standardized protocols through API's.

Tammy:

One of the questions I have is, in opening that up how are we creating a situation in which it is safe?

Sairam:

We're investing a lot in the infrastructure to continue protecting our customers' data. So right from authentication on who's got access to it and making sure you are who you say you are. Because this isn't a one-time set up and done and this is an ongoing thing. We need to make sure that this happens on every single request and every single interaction. And also showing the customers that even though they've given access to this third party that they are in control of what data that third party sees on their behalf. And they have control over turning it off anytime that they would want.

Tammy:

So if I think about a treasurer going into their ERP system. Say today they are actually processing it through the botch processes or they're actually reviewing it in the portal. Is there an opportunity for an API to work better there?

Sairam:

It is a real-time, on demand connectivity mechanism. It can help you create intelligent workflows automate an existing workflow, eliminate a pain point or help you chase up targeted opportunities.

Text on screen:

BENEFITS:

 - Create Intelligent workflows;

 - Automate existing workflows;

 - Eliminate a pain point;

 - Chase a targeted opportunity.

Sairam:

So, when you kind of think about this context and using the example that you gave about like reconciliation and everything the problem right now is if you're sending a bunch of payments you don't always have visibility into what happened to those payments in real time. With API's you can get this information on demand. So now this puts you in control of where is all my payments as an example.

Tammy:

What are some of the things that you see on your road map?

Sairam:

Our vision is very simple. How do we take more of our experiences and services to customers and create that enhanced experience for them? It's how do you provide the widest connectivity net for our customers so they can connect with us.

Text on screen:

“How do we connect and take our experiences to our customers…”

Our Vision: Empower our clients to connect however it is easiest for them.

Tammy:

How would a customer know that they are at a point that they can get started? And how would they go about doing that?

Sairam:

It all starts with collaborating with us and customers coming to us and saying hey I've got this idea, whether it's a pain point or a new opportunity or something targeted that they want to pursue, engaging their tech partner, having a forward leaning vision around like tech enabled treasury and their treasury of the future and where they're trying to take it to.

Tammy:

I'm really excited about this future. Really it does seem like it's only the beginning.

On screen:

A black and white photo montage shows the two executives engaged in their discussion.

Text on screen:

J.P. Morgan.

This material was prepared exclusively for the benefit and internal use of the JPMorgan client to whom it is directly addressed (including such client’s subsidiaries, the “Company”) in order to assist the Company in evaluating a possible transaction (or transactions) and does not carry any right of disclosure to any other party.

This material is incomplete without reference to the other briefings provided by JPMorgan. Neither this material nor any of its contents may be disclosed or used for any other purpose without the prior written consent of JPMorgan.

J.P. Morgan, JPMorgan, JPMorgan Chase and Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its subsidiaries worldwide (collectively, “JPMC”). Products or services may be marketed and/or provided by commercial banks such as JPMorgan Chase Bank, N.A., securities or other non-banking affiliates or other JPMC entities.

JPMC contact persons may be employees or officers of any of the foregoing entities and the terms “J.P. Morgan”, “JPMorgan”, “JPMorgan Chase” and “Chase” if and as used herein include as applicable all such employees or officers and/or entities irrespective of marketing name(s) used.

Nothing in this material is a solicitation by JPMC of any product or service which would be unlawful under applicable laws or regulations.

Investments or strategies discussed herein may not be suitable for all investors. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice or investment recommendations. Please consult your own tax, legal, accounting or investment advisor concerning such matters.

Not all products and services are available in all geographic areas. Eligibility for particular products and services is subject to final determination by JPMC and or its affiliates/subsidiaries.

This material does not constitute a commitment by any JPMC entity to extend or arrange credit or to provide any other products or services and JPMorgan reserves the right to withdraw at any time.

All services are subject to applicable laws, regulations, and applicable approvals and notifications. Notwithstanding anything to the contrary, the statements in this material are not intended to be legally binding.

Any products, services, terms or other matters described herein (other than in respect of confidentiality) are subject to the terms of separate legally binding documentation and/or are subject to change without notice.

JPMorgan Chase Bank, N.A. Member FDIC. Deposits with JPMorgan Chase Bank, N.A., Toronto Branch, are not insured by the Canada Deposit Insurance Corporation.

Copyright 2019 JPMorgan Chase & Co.

All Rights Reserved.

END


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JPM Treasury: Machine Learning

 

On screen:

The video begins an office, with large windows overlooking a city. Two dark-haired executives - Ray Nazloomian, in a blue suit, and Bruce King-Shey, dressed in gray - sit facing each other in cushioned chairs.

Text on screen:

Ray Nazloomian. Executive Director, Treasury Services Innovation,

J.P. Morgan.

Bruce King-Shey. Executive Director, Treasury Services Data and Design,

J.P. Morgan.

Bruce:

If you think about it, it's just about patterns and data empowered patterns. A lot of the decisions we're making as human beings, we're kind of thinking, "Ah, I wish I had more information."

Text on screen:

This is:

 - E-Commerce;

 - APIs;

 - Open Banking;

 - Payments;

 - Blockchain;

 - Treasury;

 - MACHINE LEARNING.

Presented by J.P. Morgan.

Bruce:

Machine learning is able to give you that data backed decision making and recommendations that are really helping the humans make the right decisions.

Ray:

I hear a lot about machine learning, AI, robotics, RPA. What are these technologies and are they the same thing?

Bruce:

They are not the same thing. We'll start off with artificial intelligence, AI, and it refers to the ability of computers or machines to perform cognitive functions that we normally associate with humans. Machine learning refers to algorithms taking in data and is learning more from the patterns it's seeing in the data.

Ray: 

And then if we compare that to robotics or RPA, what is that and how are those different?

Bruce:

RPA is a really good solution if you think about repetitive tasks on a computer.

Ray:

In my mind I kind of think of like an Excel macro, right? Those kind of repetitive, regular tasks.

Bruce:

Absolutely, if this, then that, if this, then that.

Ray:

Alright so Bruce, what are the benefits of using machine learning?

Bruce:

It's often helpful to think about what are the types of questions that data science can help you answer. So, one big question is, is this A, B, or C? It's really good at classifying information. It's also really good at helping answer is this thing abnormal, right?

Ray:

The exceptions.

Bruce:

Right, exactly. Another question is, how are things clustered in this data? We're human beings, we can't necessarily see how things are naturally starting to organize within that data set. And the last question is, how much, or how many? It can make quantitative, numerical predictions.

Ray:

So, if we try to summarize, I guess the four benefits are more accurate predictions, finding patterns, giving you scalability, so you can do it across millions of transactions really quickly, and then the fourth one around managing by exception, where it's managing everything.

Text on screen:

BENEFITS:

 - Accurate Predictions;

 - Uncover New Patterns;

 - Scalability;

 - Manage by Exception.

Ray:

So, machine learning, is it something that's happening in the future, or is it something that a corporate treasurer can get started with today?

Text on screen:

“More and more people are talking about how to apply machine learning to treasury.”

Bruce:

It's happening in pockets and more and more people are talking about how to apply machine learning to treasury. We know some clients they are able to use machine learning and data science to predict when they're going get payments from customers. So that really helps them with late payments. A big thing that treasurers often think about when we talk to them about machine learning is cash forecasting. We're talking to clients about how they're purpose tagging their transaction, is this payroll, is this a tax payment, is this is a vendor payment?

Ray:

So, what is J.P. Morgan doing in this space?

Bruce:

We've built a data science team in treasury services to work on treasury issues to partner with our treasury clients working with our treasury product partners. We're using data science I think in three big ways. First is really thinking about our client's experience. As you know, we released the virtual assistant this year for our clients to use in the access platform. On the inside of the house, we're working with the client service team to really think about how do our client service account managers manage service inquiries much faster. Another way is with the deep networks that J.P. Morgan has, we want to make better, smarter, financial products to help our clients make better decisions, we're making the right tools for cash managers to manage their cash flows. We're spending a lot of time with our clients really understanding what is your process? How do you manage these flows? So that we can make the right tools.

Ray:

Let's say that corporate treasurer wants to get started tomorrow with machine learning, what do they need to do?

Bruce:

A good place to really start is understanding what are the potential use cases for machine learning? So, I would recommend that our treasurer clients work with their treasury team to think about a few things. What's the most useful Excel spreadsheet? Why is it useful? What kind of insights are you getting from it? What type of decisions is that enabling you to make? And, more importantly, what do you wish that Excel spreadsheet could tell you even more about? And then don't keep those use cases to yourself. Share them with the CFO, share them with the finance tech team, share them with the chief data officer. The chief data officer needs to make sure that they're building the right data infrastructure to house all of that data, organized data, so that the machine learning can actually pull that data to derive those insights.

Ray:

Tell me more about data and why that's important and how that plays into some of the investment decisions that need to be made.

Bruce:

We are going through what I would call a data revolution. Within companies, that data infrastructure to house, organize all of that data, is actually being built. If the CFO and the corporate treasurer aren't engaging the CDO, the chief data officer, in building an infrastructure for corporate treasury and finance, when they want to use those use cases and use machine learning for corporate treasury, the data infrastructure might not be there.

Ray:

What are some of the challenges that a corporate treasurer might face as they embark upon this journey?

Bruce:

If there is anything that I want to reiterate it's not a one-person task. You need lots of heads thinking together to solve what insights do we want to provide treasury? It's not the job of one person, it's not the job of one discipline.

On screen:

A black and white photo montage shows the two executives engaged in their discussion.

Text on screen:

J.P. Morgan.

This material was prepared exclusively for the benefit and internal use of the JPMorgan client to whom it is directly addressed (including such client’s subsidiaries, the “Company”) in order to assist the Company in evaluating a possible transaction (or transactions) and does not carry any right of disclosure to any other party.

This material is incomplete without reference to the other briefings provided by JPMorgan. Neither this material nor any of its contents may be disclosed or used for any other purpose without the prior written consent of JPMorgan.

J.P. Morgan, JPMorgan, JPMorgan Chase and Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its subsidiaries worldwide (collectively, “JPMC”). Products or services may be marketed and/or provided by commercial banks such as JPMorgan Chase Bank, N.A., securities or other non-banking affiliates or other JPMC entities.

JPMC contact persons may be employees or officers of any of the foregoing entities and the terms “J.P. Morgan”, “JPMorgan”, “JPMorgan Chase” and “Chase” if and as used herein include as applicable all such employees or officers and/or entities irrespective of marketing name(s) used.

Nothing in this material is a solicitation by JPMC of any product or service which would be unlawful under applicable laws or regulations.

Investments or strategies discussed herein may not be suitable for all investors. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice or investment recommendations. Please consult your own tax, legal, accounting or investment advisor concerning such matters.

Not all products and services are available in all geographic areas. Eligibility for particular products and services is subject to final determination by JPMC and or its affiliates/subsidiaries.

This material does not constitute a commitment by any JPMC entity to extend or arrange credit or to provide any other products or services and JPMorgan reserves the right to withdraw at any time.

All services are subject to applicable laws, regulations, and applicable approvals and notifications. Notwithstanding anything to the contrary, the statements in this material are not intended to be legally binding.

Any products, services, terms or other matters described herein (other than in respect of confidentiality) are subject to the terms of separate legally binding documentation and/or are subject to change without notice.

JPMorgan Chase Bank, N.A. Member FDIC. Deposits with JPMorgan Chase Bank, N.A., Toronto Branch, are not insured by the Canada Deposit Insurance Corporation.

Copyright 2019 JPMorgan Chase & Co.

All Rights Reserved.

END


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Close

TECHNOLOGY

Treasury

Services

Innovation

Emerging technologies, such as blockchain, API, machine learning, are transforming treasury services. In the following video series, J.P. Morgan innovation leaders demystify these technologies, discuss real-world treasury services use cases, and identify how corporate treasurers can get started experimenting with these technologies today.

Blockchain

J.P. Morgan has established itself as an industry leader in both blockchain and distributed ledger technology (DLT). We are actively exploring blockchain use cases and developing high-impact solutions within Treasury Services. We plan to deliver new blockchain-enabled products that deliver tangible value to the clients we serve. The Interbank Information Network (IIN) and JPM Coin* are two examples of wholesale payments innovation that leverage the transformative power of blockchain technology.

Learn more about blockchain and DLT at J.P. Morgan See why nearly 200 banks have committed to join the Interbank Information Network Read about our recently announced JPM Coin*

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Created with Sketch.

Open Banking

Open banking is being driven by the need to create a better user experience for our customers, as well as various regulatory initiatives. J.P. Morgan is building APIs and third party integrations that will allow our customers to connect to our services any way they want. The need for Treasurers to automate processes and access real-time information is creating a rapid shift in the industry, and a key force in the growing adoption of the APIs.

Access our Solutions and APIs on J.P. Morgan Developer Learn more about the Open Banking Transformation

Machine Learning

Machine learning makes it possible for machines to learn from experience, adjust to new inputs and perform human-like tasks. Using these technologies, computers can be trained to accomplish specific tasks by processing large amounts of data and recognizing patterns in the data. In this short 2 minute video, we talk about the emerging uses of machine learning and data science in treasury and cash management.

For more general information on data science, machine learning, and artificial intelligence

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Client Service & Implementations

From the moment we begin to work with you, our goal is to provide service that not only responds to your needs but also proactively finds new ways to positively impact your organization.

Learn more about Client Service & Implementations

J.P. Morgan & OneMain Financial

Watch how we using DataOnceTM to improve the onboarding experience for OneMain Financial.

Learn more about J.P. Morgan & OneMain Financial

Treasury & Trade Services

J.P. Morgan is a full-service provider of cash management solutions specifically developed to meet the challenges treasury professionals face today.

Learn more about Treasury & Trade Services
 

Copyright © 2019 JPMorgan Chase & Co. All rights reserved.