Despite the mayhem on Wall Street, JP Morgan has unveiled plans to invest US$1 billion (NZ$1.5 billion) on technology to expand its global treasury service capabilities.
The investment, which kicked off at the beginning of 2008, will be used to finance the migration of all of the bank’s international customers onto a single, global platform that includes treasury services such as accounts, payments, billing and information reporting. The investment bank claims the platform will give clients greater transparency in monitoring their treasury activities and help them manage their cash more efficiently.
“While many banks are curtailing treasury investments, selectively downsizing their global footprint due to the current economic environment, JP Morgan is taking the opposite approach. We are boldly expanding our global treasury services capabilities,” says Melissa Moore, CEO of JP Morgan’s treasury services division.
“In conjunction with our substantial investment plan, we are expanding the JP Morgan footprint in every region in the world. Through these efforts, we are combining global and local capabilities that will enable clients to operate more efficiently worldwide.”
JP Morgan is already investing in an offshore clearing network for Asia.
The announcement was made the day after the biggest shake-up in the financial markets for a century, with the news that Lehman Brothers had filed for bankruptcy, Merrill Lynch had been bought by Bank of America, and American International Group (AIG) was in negotiations for emergency funding.