Global financial services firm J.P. Morgan announced that it is using blockchain technology to improve funds transfers between banking institutions globally, including payments originating from Taiwan banks to beneficiary banks in other markets. Through improved information exchange related to such payments, the new solution called Confirm is expected to help reduce the number of rejected or returned transactions caused by mismatched payment details, lowering costs for both the sending and receiving banks.
By leveraging Confirm – a global account information validation application on the Liink by J.P.MorganSM — partner banking institutions, including Taiwan banks, will be able to request confirmation of the beneficiary account information and receive responses directly from other participating banks receiving the requests in near-real time. Once the information is validated, the payment may be sent through J.P. Morgan’s global clearing solution PayDirect to route the payment in the most efficient manner.
The efficiencies offered by the Confirm and PayDirect solutions are expected to help improve straight-through processing rates, increase transparency and enhance their customers’ end-to-end payment experience by reducing returns. Testing is under way with 12 Taiwan banks, including Taiwan Cooperative Bank, First Commercial Bank, the Shanghai Commercial & Savings Bank, Mega Bank, Taipei Star Bank, Taiwan Shin Kong Bank, CTBC Bank, for money transfers via PayDirect into Indonesia.
“We are delighted that J.P. Morgan’s leading-edge technology, combined with our global infrastructure, is helping our clients in Taiwan address unique challenges pertaining to cross-border transactions. We have been listening to our clients and will continue to invest in new products and services to meet their needs, as we did in the past 50 years,” said Carl Chien, Vice Chairman for Asia Pacific and CEO for Taiwan at J.P. Morgan.
About Liink’s Confirm
Liink – part of the Onyx by J.P. Morgan business unit – was launched as a pilot in 2017 as Interbank Information Network (IIN) and today has participants comprising more than 400 financial institutions and corporates, including 27 of the world’s top 50 banks, across 78 markets. The Confirm application, introduced late last year, is among an expanding suite of new applications developed on the Liink as a result of direct feedback from network participants to address their needs and challenge across the global payment ecosystem. Confirm allows participants to request confirmation of account information in and receive responses in near-real time directly with other participants on the network.
About Global Clearing PayDirect
PayDirect is a J.P. Morgan solution that allows financial institutions to capture new flows by using existing pay-in methods and channels to pay global beneficiaries via various pay-out methods, with the benefits of lower end-to-end transaction costs, predictability and transparency.