The Italian pension entity, Istituto Nazionale Previdenza Sociale (INPS), sent public notices to all Italian financial institutions requesting their participation in a bid for executing pension payments to 409,000 Italian pensioners in 134 countries. The majority of pensioners had been receiving payments monthly, and minor or smaller payments semiannually or annually. Four Italian banks had been providing these services to INPS. However, INPS wanted to consolidate all payments with a single financial institution. To achieve their desired model, INPS required the winning institution meet several criteria: the euro be the preferred currency (where allowed by country regulation), an electronic credit to the beneficiary account be the preferred payment method and the beneficiary receive full payment without deductions. They also required unique pricing per transaction, regardless of country and means of payment, as well as the winning institution's correspondent bank to have a large number of branches. Many global and local institutions joined the bidding pool, including the Istituto Centrale delle Banche Popolari Italiane (ICBPI).The Challenge
ICBPI looked to as many as 20 financial institutions to help them implement the full requirements of the pension plan globally. To achieve this goal in the United States, they needed a correspondent bank solution that would enable them to make U.S. dollar payments to 40,000 pensioners. Paolo Raffone, ICBPI pension payment project manager and Angela Lupi, First Line Bank manager, looked to J.P. Morgan Treasury Services. "We chose J.P. Morgan because of their US footprint, as they had many branches. We wanted our project to be with a very solid institution" said Mr. Raffone. The J.P. Morgan relationship team quickly brought ICBPI a U.S. dollar pension payments solution that consisted of several proprietary electronic components: J.P. Morgan ACCESSSM, Host-to-Host, ACH and Payables Web Services. The solution also included SWIFTNet. As ICBPI proposed their solution and J.P. Morgan's U.S. dollar clearing component, INPS was assigning scores to each proposal – with the financial institution with the highest score winning the business for three years."The J.P. Morgan team did everything right"
In addition to the solution's benefits, key to the project's success was J.P. Morgan's ability to implement the solution efficiently. J.P. Morgan's highly organized on-site implementation team made the difference for ICBPI, despite many other teammates joining forces from across the globe – Implementation, product specialists, Sales and CSOs in New York, London and Milan. J.P. Morgan stood out among the crowd, even with ICBPI involved in 20 similar implementations with other correspondent banks. Ms. Lupi stated, "J.P. Morgan's sales teams, technical staffs, documentation providers and product teams were always available any time we needed them. The J.P. Morgan team did everything right."
Mr. Raffone and Ms. Lupi identified four key factors that made the implementation successful.