1 October 2002 - Geneva - Sibos 2002 - JPMorgan Treasury Services (TS) and Deutsche Postbank AG today announced that they have achieved an unprecedented 99% straight through processing (STP) rate in the processing of pension payments. By partnering with JPMorgan TS, Deutsche Postbank is able to leverage the bank's hub infrastructure, sophisticated technology and global connections to achieve exceptionally high STP rates for payment processing.
Deutsche Postbank, a long-standing customer of JPMorgan TS' payment processing services, began earnest discussions about a specific pension processing project in September 2001. They needed to partner with a bank that had the global capability necessary to ensure payments reached pensioners' accounts in the required currency within the deadlines specified by relevant government regulations. Many of the payments lacked critical data and required significant re-formatting in order to be correctly routed. Additionally, OFAC (Office of Foreign Assets Control) stringent security regulations have further complicated international payment processing. JPMorgan TS currently processes 30,000 of these pension payments through its UK and German payment centres on one single day.
Dr Susan von Gunten, International Relations and Payment Solutions, at Deutsche Postbank comments, "Our client's pension payments are routed to locations across the world, in several different currencies and with different formatting requirements. Correctly formatting the payments to conform to government and OFAC regulations was particularly difficult. We were very impressed with the flexibility of JPMorgan TS' solution and the ability of its technology and key people to achieve such remarkably high rates of STP in light of such challenges."
John Hazlewood, Product Management Executive EMEA, JPMorgan TS adds, "JPMorgan TS' hub infrastructure, which includes payment processing centres in key global locations, and meticulous approach to implementation ensures these critical payments are received by the pensioners on time. In our initial testing phases, 66% of the total list had OFAC violations, purely because of the nature of the countries where the payments needed to be disbursed. Similarly, 25% of the payments were missing critical details in several electronic payment fields. At the start of the project these payments were only reaching 27% STP rates. We brought that figure up to 99%. This is testimony to our implementation capabilities, technology and global presence. We also had outstanding co-operation and support from the Deutsche Postbank team, which is at the heart of the relationship we enjoy with Deutsche Postbank and key to the success of this venture."
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