Reportedly, JPMorgan Chase & Co (JPM) and BlackRock Inc. have teamed up with Saphyre, an artificial intelligence technology startup to digitalize and automate the opening of custody accounts. The AI-powered system remembers when an asset manager uploads a specific document required to open a custody account, making the process much faster and easier in comparison to the heavily manual process burdened with paperwork, spreadsheets, and faxes.
“The custody side, historically, has been a very traditional industry operating steadily and reliably with faxes and spreadsheets. Asset managers are starting to realize that the lack of automation is causing issues, and is actually a missed opportunity to be more efficient,” stated Naveen TV, managing director, product development in securities services at JPMorgan.
JPMorgan with $27.4 trillion of assets under custody, acquired $1 trillion of BlackRock’s assets in 2017. The COVID-19 imposed lockdowns have further slowed down the process of setting up custody accounts, as a lot of the documents require manual intervention by multiple parties and banks do not allow printing of sensitive documents at home as most people are working remotely amid the pandemic.
JPMorgan Chase & Co (JPM) is a global financial service leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and commercial banking. To learn more about JPMorgan Chase & Co. (JPM) and to continue to track its progress please visit the Vista Partners JPMorgan Chase & Co. Coverage Page.
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