JPMorgan Chase, a full-service provider of cash management, trade finance, and treasury solutions, today announced the successful completion of the second phase of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) global payments networkâs Exception and Investigations (E&I) pilot initiative. JPMorgan Chase has now adopted the new XML based protocol as the standard for automating the processing of E&I messages pertaining to funds transfers.
âJPMorgan Chase is pleased to have completed the pilot program testing SWIFTâs new E&I initiative, and to have implemented it as our standard protocol,â explained Edward B. Wolfe, vice president and senior product manager of U.S. dollar clearing for JPMorgan Chase & Co.âs treasury services unit. âThe pilot program successfully demonstrated the substantial efficiencies that can be achieved through automation of the E&I process, which reduces manual processing, thereby leading to better service and lower costs for our clients.â
The SWIFTNet network is used by thousands of financial institutions in over 200 countries to transmit billions of financial instructions in machine-readable formats worldwide each year. Today, 61 percent of E&I messages sent via SWIFT relate to payment instructions, yet only approximately five percent of those instructions are processed without manual intervention. It is estimated that by implementing the E&I protocol, automation levels could be raised to approximately 60 percent, improving the banking industryâs balance sheet by $165 million a year, in savings and new revenue. The protocol could also be applied to other kinds of SWIFT messaging, such as securities or trade-related issues.