JPMorgan Chase Uses Esri Mapping For Branch Plans, Resilience And Marketing

Although from reading about contemporary banking you might get the idea all the business is getting done from mobile phones, physical branches and ATMs are still key to most banking interactions, from transactions to advice to wealth management.

So with 5,500 branches and 18,000 ATMs located across 23 states, JPMorgan Chase relies on geographic information systems (GIS),  along with customer data to choose facility locations and to support marketing.

“The customer data is quite impressive,” said Jeremiah Glascock, vice president and GIS market manager at Chase during the July Esri conference in San Diego. “One of every two of you has some sort of relationship with Chase.”

His group analyzes every piece of data that comes across its desks, he said. It had used that familiar data tool, Excel before moving much of its analysis to Esri GIS.

“What was spreadsheets has now evolved into a location strategy,” said Wally Johns, vice president and market research group manager at the bank. “Most data points have spatial components, such as branches, ATMs, where customers shop and where they live, and where our employees are located. We have a tremendous amount of data in-house.”

For several years the bank had a branch planning group of two people working with the site selection team to help make real estate decisions, and a separate marketing group doing geo-analytics to support direct marketing mail campaigns with very little overlap or information-sharing.

Then two years ago the bank decided to enter the Jacksonville, Florida market. Glascock and Johns got together and decided to collaborate on the project using Esri.

Instead of site planners going out in person and drawing on maps, the bank is using technology to build models, capture data from existing locations and work with the site teams.

“We had to persuade our clients that this was going to work for them,” Johns said. “We assured them that working together we could provide what they needed. We moved from a mapping exercise  to building out a location strategy for the Jacksonville market.”

From mapping providers the team has grown into an internal consulting firm at the bank.

Besides facility location planning and marketing, the GIS group is developing resilience planning for the bank.

“We experience minor and major disruptions every day of the week,” said Glascock, “From power outages and networks going down to terrorism, cyber attacks, bank robberies and storms. The business resiliency team has resource and tools to analyze the risks and prepare strategies to mitigate them, and that involves a whole lot of spatial data.”

During crisis events, ranging from protests near JPMC locations in the Philippines, nationwide strikes in Argentina to power outages and structure damage resulting from hurricanes like Hurricane Sandy, Glascock helped provide GIS application and analytical support.

“Now we are getting a lot of requests from folks we didn’t know had a need, from the investment bank to credit cards.”

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Instant Replay For Traders Helps Them Analyze Algos

Horizon Software has launched an innovative market data recording and replaying module which lets financial institutions  replay an entire day of market data for a broad range of asset classes and instruments, including stocks, futures, options, bonds, indexes and ETFs.  The can help enables traders test and fine-tune their algo strategies using the day’s  data.

The Replayer records real-time market data, which can then be replayed at any time, giving traders the ability to analyze, benchmark and test trading strategies using real market conditions. Simulated tests can also be run to establish a benchmark baseline for repeat tests.  Replayer can also provide proof of best execution requirements for regulations such as RegNMS and MiFID.

, says: “The Horizon Replayer is being used for real-time stress testing of trading strategies on the whole list of 50,000 instruments on the Euronext Derivatives exchange,”  said Sylvain Thieullent, CEO for electronic rading at Horizon Software. “If an algo is not performing as expected, a trader can  replay the whole trading day and fine-tune his algos, significantly improving performance.”

The Replayer works alongside other Horizon Platform functionality, such as algorithmic trading, warrants, delta-one, options trading and market making.

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Most Merchants Unprepared For Today’s Credit Card Liability Shift

From the survey numbers on how many merchants are ready to accept credit cards with EMV chips in them, you might think this is a new development spring on retailers, instead of an effort that has been in the works for years and postponed several times.

Starting Oct. 1,  credit card companies will no longer take the liability for any fraud — if the fraud occurred because a merchant didn’t use EMV when it was available on the card, the merchant eats the cost.

The rollout of EMV, which stands for the major credit card issuers — Europay, MasterCard and Visa — is not entirely smooth; nearly two-third of consumers haven’t received an EMV card yet, and 30 to 40 percent of merchants aren’t aware of the deadline.

In addition, the cards are used differently from swipe cards. Consumers have to wait until the sale is tallied and then insert the card into the reader, where it communicates with the card company and trigger an authorization. Or not, as the case might be. In any event, it is a little slower than a quick swipe and consumers will have to be educated in how it works.

Contrary to some news reports, the chip cards won’t require a PIN code in most cases. The card companies decided to go with chip and signature out of fear that a PIN requirement might relegate their card to back of wallet.

Payment experts think that PINs, widely used with credit around the rest of the world, will be adopted eventually, although the rise of paying through mobile phones with a thumb print for authentication, may push aside the need for PINs.

At the Chicago Fed’s Payment Symposium last week, one participant said he’d talked to a merchant who was going to skip EMV during the holidays because it was too slow. Some payment terminals will not allow a merchant to swipe a chip card but all terminals accept the magnetic swipe for cards that don’t have chips.

As the POS payments become more secure, card companies are looking for an increase in card not present fraud —ecommerce by phone and internet where using fake or unauthorized cards to buy goods or gift cards is a popular end run around the improved protections at registers.

Aon, the insurer, says it can take up to six months for a merchant to prepare for EMV, including acquiring the necessary certifications as well as covering costs for purchasing, buying and installing the chip readers.

Retailers will need to continue to spend significant time and resources training their staffs on how to interact with consumers, educate them and attempt to build the habit of “dipping and waiting” warns Gemalto, a global player in cards and card readers.

Capital One’s survey found that: Only 32 percent of Millennials report being aware of the changing regulations around EMV, compared to 46 percent of total respondents …and of the 43 percent of respondents familiar with EMV, chip, or PIN-enabled credit cards, only 34 percent currently accept them as a form of payment

Ovum, the financial consultancy, couldn’t help sounding a big snarky when it reported that 30 percent of merchants had never heard of EMV, 5 million businesses aren’t ready for it, but “Despite this ignorance, 54% of merchants report that security is a top concern.”

The consultants don’t think merchants have much choice.

““Many merchants are reluctant to invest in EMV, but they need to understand it is an industry standard and there is no real alternative. Reluctance to invest today will only increase exposure to risk for a shift that will eventually have to be made anyway. Despite the growth of mobile, it’s still decades away from fully replacing cards.”

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Branch Banking Is Changing

Tellers using tablet — are they a security concern? How do you defend a network connecting multiple widely dispersed branches, and what is BiModal IT? See the online discussion with CenturyLink Financial Services where Roji Oommen, managing director of financial services answers these and other questions.

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Calypso Signs Global Sales Agreement With SAP

Calypso Technology has signed a global agreement for SAP to resell Calypso cross-asset, front-to-back treasury and capital markets platform as two solution extensions to the SAP application set: the SAP Capital Markets Trading solution by Calypso and the SAP Capital Markets Treasury solution by Calypso.

“This partnership unites best-in-class commercial banking and capital markets solutions to deliver outstanding benefits to clients,” said Charles Marston, chairman and CEO of Calypso Technology. “As a result, customers can benefit from greater automation provided by proven technology, which can lead to increased efficiencies and reduced TCO.”

Calypso’s platform integrates with SAP Advanced ServerEnterprise (SAP ASE) and complements SAP’s financial services portfolio for capital markets. The combined solutions allow customers to reduce the total number of systems in use, simplify their architecture, streamline processes and improve efficiency while lowering the total cost of ownership.

“SAP already has a large base of customers using SAP solutions for capital markets, including SAP ASE, core platforms for integrated risk and finance, and the SAP HANA platform,” said Ross Wainwright, global head for financial services at SAP.

The Calypso platform is used by more than 200 financial firms and 34,000 capital markets professionals and the company is a leader in the Gartner Magic Quadrant for trading platforms and for the sixth-year running. Calypso is also the number one selling treasury and capital markets solution in the 2015 IBS Sales League Table.

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Traxpay Wins International Awards For Ecommerce

Traxpay, pioneer in business-to-business (B2B) Dynamic Payments, today announced that its CEO, John Bruggeman, was named “Gamechanger of the Year (Fintech)” by ACQ Magazine. The magazine and its 119,000 readers also named Traxpay’s B2B Dynamic Payments Platform “2015 B2B Payments Platform of the Year.” The leading monthly publication annually honors “industry leaders, eminent individuals, exemplary teams and distinguished businesses, which we believe represent the benchmark of achievement and best practice.”

In its 10th year, the ACQ5 Global Awards calls on its readership of senior executives from around the world to put forth nominations to seek out “experts whose intimate knowledge and expertise in the cultural, financial and legal arenas are redefining our industry,” according to Jake Robson, Group Editor of The ACQ5. “The 2015 ACQ5 Global Award winners represent the best of breed in the industry and have earned these honours by standing out in a group of very impressive finalists.” Nearly 33,000 nominations were put forth by the magazine’s readers who were encouraged to base their decisions on experience, value for money, and responsiveness. From this, the judging panel derived a numerical rating from 1 – 5, shortlisting only nominees receiving an average 4 star or better rating.

“The stream of positive industry recognition we have received since leaving stealth mode in late 2012 continues to reinforce our belief that our B2B Dynamic Payments solution is delivering value to the market and transforming the way companies do business in today’s competitive environment,” said David Desharnais, CMO and SVP of Products at Traxpay. “We are honored to be recognized by ACQ5 for driving long awaited innovation to B2B payments and transactions, and to have our CEO John Bruggeman be named Gamechanger of the Year for Fintech.”

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Julius Baer Selects Temenos For Tech Refresh

Julius Baer, the Swiss private banking group, which plans to  to progressively renovate its IT systems, will undertake the project with Temenos. The bank’s  program will begin with core system replacement, using the Temenos T24 platform to be used as the hub for the bank’s operations in Asia. After that, Julius Baer will progressively modernize its systems across the front and back-office.

Julius Baer is the leading Swiss private banking group, with a focus on servicing and advising sophisticated private clients in global wealth management through 50 global locations. After Asia, the bank expects to use Temenos for core banking replacement across multiple additional sites, including Europe, and to develop its next generation multi-channel private wealth solution.

Julius Baer considered Temenos’ technology to be the best fit for its IT strategy. The goal of the modernisation programme is to improve the bank´s clients’ service experience, to increase operational efficiency and to become more agile.

“Regulatory burdens are rising at the same time as customer expectations are changing,” said David Arnott, CEO at Temenos. “Julius Baer has the right strategy: to build a scalable, highly-automated IT platform for back-office operations with decoupled, cutting edge front-office capabilities that enable it to build rich, interactive and personalized experience across customers’ preferred channels” .

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