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JP Morgan extends cross-border digital payments to China

JP Morgan has announced the China launch of E-Customs Payment Solution, making it the first foreign bank in the country to offer a solution that fully digitises and automates cross-border payments of goods.

The new solution “solves common pain points associated with the manual nature of such transactions,” the bank commented.

Importers in China are required to provide supporting documents to their banks prior to making payments to overseas suppliers, an often labour-intensive and time-consuming process. With the E-Customs Payment Solution, JP Morgan’s clients in China will only be required to send the payment instructions with linked customs declaration number

Using application programming interface (API) technology, the new solution will then retrieve the relevant customs declaration status in detail from the local authorities via the Shanghai International Trade Single Window (part of a streamlined administration initiative introduced at Chinese ports in 2017 to boost trade) in real time and process the payments automatically.

Clients will be able to keep track of their payments through JP Morgan Access global cash management solution at all times.

Continental among first users

“JP Morgan’s E-Customs Payment Solution has significantly improved our operational efficiency with time and resource savings and reduced manual inaccuracies while keeping our business fully compliant,” said Jason Tan, head of treasury and credit management, Asia, at automotive manufacturing company Continental AG. “We have been able to make comprehensive business decisions from a treasury perspective as a result.”

The German company is currently implementing the solution as it looks to fully digitise its cross-border payment processes.

Rani Gu, head of treasury services, China and head of treasury services product, Greater China, wholesale payments, JP Morgan added: “We are pleased to roll out an innovative solution that enables the full digitisation of cross-border payments, which we view as a milestone and one that addresses our clients’ specific needs amid a rapidly-evolving treasury landscape.

“As a global leader in cash management, JP. Morgan has been investing heavily in this space to better serve our clients.”

The bank has been actively exploring how emerging technologies such as blockchain, artificial intelligence (AI), and an enhanced digital experience can be deployed in its payments business to better serve its clients’ ever-changing needs. JP Morgan spends more than $11.5 billion in technology annually, a significant portion of which is invested in new technologies.

The bank has been actively exploring how emerging technologies such as blockchain, artificial intelligence (AI), and an enhanced digital experience can be deployed in its payments business to better serve its clients’ ever-changing needs. JP Morgan spends more than $11.5 billion in technology annually, a significant portion of which is invested in new technologies.

The launch follows the recent confirmation that both JP Morgan and Nomura have won Chinese regulatory approval to set up majority-owned brokerage joint ventures, in China’s latest move to open its financial sector up to foreign firms.


This item appears in the following sections:
Bank Relationship Management & KYC
Cash & Liquidity Management
Cash & Liquidity Management in Asia-Pacific
Payments - Bill Collection
International Bill Payments
Payments - Making
International Payments
Urgent/Instant mPayments
Region
Asia

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