Magazine article American Banker

JPM Chase Plans Global Expansion in Treasury Field

Magazine article American Banker

JPM Chase Plans Global Expansion in Treasury Field

Article excerpt

Byline: Steve Bills

JPMorgan Chase & Co., seizing on the ongoing credit crisis and the transformation of payment systems, announced plans Tuesday to expand its corporate treasury services around the world.

The New York company is planning to spend $1 billion over the next three years to enter new markets and enhance its systems for managing corporate clients' cash and related operations. It also said that it has retained a strong capital position while some rivals have had to seek outside investments.

Alan Koenigsberg, a vice president in the company's JPMorgan Treasury Services, called the plan "a very compelling international expansion program" that would expand existing capabilities and add new ones.

For instance, JPMorgan Treasury Services plans to integrate its online cash management services into a single, global platform that will let clients manage their finances more efficiently across regions, Mr. Koenigsberg said in an interview Tuesday from the Sibos conference in Vienna sponsored by the Society for Worldwide Interbank Financial Telecommunication.

To some extent, JPMorgan Chase is building on investments it has already made, such as an automated clearing house system for the Single Euro Payments Area in Europe, he said. "It began with the international ACH program," but the effort also involves new services.

One new element is an offshore clearing network in Asia that lets clients conduct dollar-denominated transactions there and consolidate their cash balances with same-day finality, Mr. Koenigsberg said. "Asia-Pacific is a significant opportunity, a significant investment - also Latin America."

As its various offerings become more integrated, JPMorgan Treasury Services plans to extend these services into new markets, he said. "There are going to be offshore clearing opportunities in the Middle East in years to come. …

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