With the new centres in Asia, JPMorganÆs financial institution clients will gain increased efficiencies in clearing their US dollar cash letters and lower their cheque transportation costs. Under the IDC model, clients will be able to perform these activities without changing their cash letter operations.
ôFor more and more of our global clients, this expansion of image deposit centres means they can continue to conduct business as usual when it comes to preparing their US dollar cheque deposits,ö says Lisa Robins, senior vice president, head of product management, Asia-Pacific region at JPMorgan Chase.
ôAfter receiving items at any of our international image deposit centres, we use state-of-the-art imaging technology to scan cheques and deposit tickets, then convert them into digital images which are transmitted to the United States for clearing. JPMorgan Chase has made the investment in the technology, so our clients donÆt have to.ö
Like its existing IDCs, the new centres in Singapore, Hong Kong and Mumbai are each equipped with hardware and software to scan, digitise and transmit cheque images. Aside from improving efficiencies and lowering processing costs, the bank can identify cheque fraud more quickly with electronically transmitted return notifications and can minimise the risk of transporting the physical paper cheques for settlement.
The bank has invested more than $100 million to enhance its image infrastructure and expand its depository services capabilities since launching its inaugural IDC in Frankfurt in October 2006. With the Frankfurt opening, it become the first global treasury management services provider to establish such centres in local markets around the globe. Prior to this, similar centres were mainly found exclusively in the US.
In July, JPMorgan made its first IDC foray into Asia, opening its first regional centre in Shanghai. The bank expects to launch additional centres in 2007.