Laboratory for Innovation: JPMorgan Chase

Article excerpt

Chase Manhattan Corporation launched its first Internet banking application in early 1997. Since that time, Chase has offered its customers a variety of e-finance services and also has been instrumental in pushing the industry forward.

In December 2000 Chase merged with J.P. Morgan; as a result, the combined JPMorgan Chase has more than $715 billion in assets, 32 million customers, 300,000 small-business customers, and 5,000 corporate and institutional clients. By June 2000 Chase had more than 3 million online banking customers, 14% penetration of its customer base.

Chase's Internet strategy includes creating new technologies and growing the effort overall through LabMorgan, the e-- finance incubator/venture capital arm of J.P. Morgan. The Lab has helped finance, build, and market 67 ventures since January 2000, including Yodlee, Metiom, Kinexus, FxNet, Financial Oxygen, Mobiliocity, Tantau, PayPal, Si, and SWIFT. Since the merger, Chase has had a hand in the creation of, and access to, these technologies, which the bank uses throughout the Chase.com site as well as in its partnerships.

In addition to the in-house development and outsource relationships for its e-finance offerings prior to the merger, Chase has leveraged its new relationship with LabMorgan to create and deliver new services to its personal, small-business, high-net-worth, and corporate clients. These clients can use the www.chase.com site as a home page to log onto the bank's co-branded and co-- marketed services.

Though the retail services are still handled under the Chase brand and the commercial services under the J.P. Morgan brand, JPMorgan Chase maintains uniformity in its offerings.

CONSUMER E-ERVICES

Chase's services for personal banking customers include account balances on checking, savings, credit, mortgage, and other loan accounts; transactional histories; funds transfer; bill payment; a financial portal; shopping; account aggregation; personal financial management software; and, soon, wireless access. Chase uses Corillian's Voyager product for its standard e-banking application and CheckFree's bill payment services.

The bank aims to facilitate customer adoption of Chase.com as a one-stopshop for Internet banking. To further that goal, Chase launched its aggregation of accounts service in October 2000 in partnership with Yodlee, a former LabMorgan venture and leader in aggregation services on the Internet.

In November Chase agreed to license Digital Insight's Consolidator product for retail EBPP (electronic bill presentment and payment). Chase is a partner with several other financial institutions in the Spectrum Electronic Bill Consortium, another former LabMorgan venture, which is designed to set the technological standard for EBPP. …