JP Morgan is living the ultimate American banking dream, what with over 220 banks joining its Interbank Information Network (IIN). Primarily, the creation of this leading blockchain technology in October 2017 aimed to accomplish two missions. One is to deal with any delays that can occur in cross-border payments, given how complicated these transactions could get. Aside from that, the IIN also ensures that any threat from new non-bank competitors is kept at bay. An excellent example of this is the current processes of TransferwWise which circulate in £3bn-excess payments per month. As if those weren’t enough, the American investment and commercial banking giant is onto yet another business exploit.
In with the IIN (Interbank Information Network)
Such functionality as that of the Interbank Information Network would be in vain if not developed beyond its capabilities. Hence, proprietor JP Morgan Chase strives to push the blockchain technology with a humane approach – to mold banking industry payments into something more accessible and better to its users. Likewise, JP Morgan moored onto a diverse pool of fintech firms for assistance to further enhance IIN’s range of capabilities.
Having reached its current global level, the innovative platform enhanced the performance of participating banks. Enhanced international payment businesses now enjoy the benefits of increased digital transactions with input from customers of TransferWise, Ripple, and Revolut. IIN’s development may have been more on the organization of authorizations at first, but this next progress will be geared towards settlement.
Additions and Implementation
As demonstrated by JP Morgan global clearing head John Hunter, the leading financial services firm incorporated yet another feature. The objective is to guarantee the accuracy of real-time payments by eliminating problems on payment rejection. Major triggers for this include typographical errors on users’ account number and sort code. Hunter also articulated the current straight through processing rates (STP) of banks only circulate under 80%-90% of its original capacity. The lacking remnants of 5%-20% will be yet another problem solved by the institution of IIN into the banking world.
Hunter revealed that this innovative feature wouldn’t be on the works until the third quarter of 2019. Nonetheless, it will be able to work its wonders not only for both payments but also in places within and outside the country. Users can expect to experience a safe messaging file, transfer and data modeling with the slightest of threats and risks, thanks to the introduction of IIN’s testing environment.
Don’t drool yet, though, for there are still more to it than it seems. With assistance from developers, there is also a possibility for the elimination of problems among the areas of tooling, data, and ecosystem, as sensed by the JP Morgan head. The American investment and commercial banking giant also targets the establishment of a sandbox for the fintechs’ utilization of various applications.
Although these services from the brilliant IIN are free to the public, for now, it won’t be long until it starts charging fees. Nothing comes for free in this world, indeed, but rest assured that the improved system’s convenience promise will be worth the price.