JP Morgan Chase is in the process of expanding their Block chain project to include payments. Their project is done in participation with 220 banks. The project looks to improve the transaction between banks as they hope to make transactions between the member banks. With the improvement, they hope to compete with the new payment methods that are now available.
The Blockchain Project
The project entitled Block Chain Interbank Information Network of IIN was set up with the help of partners ANZ, one of the largest Australian Banks, and Canadian banking giant RBC. It was established in 2017 and now includes 22 banks in its network.
The block chain project makes use of block chain technology to resolve complex payment encryptions that would otherwise take months to resolve considering the number of banks connected to the transaction.
The project was created through the Ethereum based block chain project network called the Quorum. It runs on the same platform that was the JPM coin is running on. Block chain is one of the few banks open to expanding into the block chain industry.
The Point of Settlement Innovation
One key innovation in JP Morgan Chase ’s block chain project is the improvement in the point of settlement. Bank processing is stuck in the 80s and 90s where a mistake made with the recipient account number or sort code could delay the transaction for delays.
With the improvement in the point of settlement, it alleviates delays due to compliance or error handling. These errors consist five to twenty percent of all the transaction s of the bank.
The addition of this push for the block chain project is a push that was made to compete with growing payment processing outfits like transferwise and the block chain ripple.