JPMorgan blockchain-based payment initiative has added the Deutsche Bank as its latest member.
The addition brings the total number of banks signed up for the InterBank Information network to 320, according to the report revealed.
Announced in the month of October 2017, IIN is built on the Quorum, the Ethereum based blockchain network developed by the banking giant, and even employs a stable coin duped JJPM coin. JPMorgan revealed that at the time that the platform would even slash the time and costs which is required when resolving interbank payment delays.
IIN saw the start of the remittance trials with the JPMorgan client banks in the month of June.
As per the report, the bulk of the member banks use the JPMorgan to process USD payments. Deutsche Bank, through ranks number one globally for the clearing of the Euro-denominated payments.
“Our competitors are not just the other banks, it’s also new players in the market, we need to become efficient enough to provide seamless real time and digital process,” Matthiessen said.
“It [joining IIN] is definitely directionally a very important step for us because it will help drive [customer] satisfaction.”
“A network that only has JPMorgan’s clients will have very big natural limitations. It would mean that all of these other smaller banks would still need to have bifurcated procedures, what they do with JPMorgan and what they do with other banks would still have to be different,” added Georgakopoulos.
“Having Deutsche join — and hopefully Deutsche will be the first of several other large banks — is going to help us drive towards ubiquity and ubiquity is a pre-requisite for the success of the network.”
IIN brings efficiencies by writing all the data on the payments a shared ledger, thus even allows the problematic payments to be resolved more quickly and with less manual processes, said the Deutsche bank global head of Cash management.
With his bank having recently cut back its investment banking business and now even replying more on the transaction banking, he also said joining IIN is “an important step” that would even reduce the Deutsche costs and even allow it to offer better services to clients.
Matthiessen added that IIN’s plan to have 400 members by the end of 2019 is on track and that other major banking members are likely to be announced very soon.