When J.P. Morgan speaks, most financial institutions listen. A recent Wall Street Journal article outlined the US bank’s $9.4 billion technology spending plan, 40% of which will be allocated to new investments and technology. While new investments and technology are essential, part of the company’s plan is to also trim excess cost.
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Here are just some of the ways the company plans to streamline its technology operations:
- Reduce Legacy Applications: Matt Zames, J.P. Morgan’s chief operating officer, wants to shrink the number of software applications it uses by an overall 25%. In 2015, it was able to cut the number by 13%.
- Expand Digital: With digital transformation on the rise, this is naturally a place of investment for financial services companies. With an “active” mobile user base that has grown 20% year-over-year, J.P. Morgan will continue enhancing its mobile app and ATMs, even introducing card-less ATMs that can be accessed via mobile phones, in order to help curb fraud.
- Maximize Analytics: Gartner forecasts that the business intelligence (BI) and analytics market will increase 5.2% over last year, reaching $16.9 billion by the end of 2016. J.P. Morgan plans to leverage such tools to gain better insight into its customers to be able to target them for new business.
- Invest in Emerging Technologies: Probably the most fascinating initiative of all is the bank’s hunger to find new technology gems hat have the potential to take the company to the next level. In the last couple of years alone, J.P. Morgan has worked with over 300 technology firms, conducted 100 pilots, and implemented approximately 50 new applications. Those stats are quite impressive for any industry, let alone FinServ.
To read more about J.P. Morgan’s spending plans, click here.