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JPMorgan (JPM) Partners With Trade Finance Provider Cleareye.ai
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JPMorgan (JPM - Free Report) has formed a strategic alliance with Cleareye.ai, a financial technology firm focused on trade finance. Trade finance refers to the financial products offered by institutions that seek to facilitate global trade by reducing counterparty risk between importers and exporters.
JPM’s investment in Cleareye.ai leverages the ClearTrade platform, solving the challenges faced by trade finance (the industry is going through a digital transformation).
With the help of technological advancements, the ClearTrade platform streamlines the difficult due diligence process related to trade finance transactions and the huge number of physical documents that are still present in the industry today.
The ClearTrade solution helps banks in ensuring that they can continue to operate in this changing environment, which is being weighed down by a significantly increasing expense base.
Notably, over the past year, the ClearTrade platform was integrated into JPMorgan’s trade processing system. With the help of its alliance with Cleareye.ai, JPM will be able to further leverage the digitizing of documents using powerful image processing solutions with the ability to extract, validate and accurately classify unstructured data.
Stuart Roberts, the global head of trade and working capital for JPM, stated, “Digitizing trade finance documentation has the ability to provide real benefits to J.P. Morgan and our clients. Banks have grappled to solve the puzzle of paper and manual data entry in this business for many years and our alliance with Cleareye is taking meaningful steps towards solving the problem. The ClearTrade platform also helps us to accelerate and future-proof our clients’ business while reinvesting savings into enhancing controls and risk management.”
Mariya George, the CEO and co-founder for Cleareye, said, “J.P. Morgan maintains a gold standard for digital innovation while ensuring regulatory needs are met, and we are very excited about the ClearTrade implementation and go-live. This also reinforces the strategic alliance between our firms and the vision to digitize trade operations for banks across the globe.”
Over the past few years, JPMorgan has engaged in several strategic acquisitions that supported its fee income base and improved market share across products and services.
This May, it acquired Aumni and failed First Republic Bank (a FDIC-assisted deal). Last year, the company announced a deal to buy Renovite, while it acquired a 49% stake in Greece-based Viva Wallet and Global Shares. Likewise, in 2021, JPM announced several acquisitions. The notable ones are a 75% stake in Volkswagen's payment arm Volkswagen Financial Services, OpenInvest, a 40% stake in Brazil's C6 Bank, the U.K.-based robo-advisor Netmeg and 55ip.
These deals, along with others, are expected to keep supporting the bank's plan to diversify revenues, and expand the fee income product suite and consumer bank digitally.
Over the past six months, shares of JPMorgan have rallied 9.1% against a 3% decline recorded by the industry.
Tradeweb Markets Inc. (TW - Free Report) entered an agreement to acquire Yieldbroker, a prominent Australian trading platform, in an all-cash transaction valued at A$125 million. TW's deal with Yieldbroker is expected to close by the end of this year, subject to customary conditions and regulatory reviews.
BlackRock (BLK - Free Report) signed an agreement to acquire London-based Kreos Capital, a private debt provider. Closing of the transaction, still subject to customary regulatory and closing conditions, is expected in the third quarter of 2023.
The acquisition of Kreos will further bolster BlackRock's position as the global credit asset manager. The deal is also expected to expedite BLK's goal to provide its clients with a wide range of private market investment products and services. The deal will complement BlackRock's Global Credit business and their clients will have access to Kreos' additional private debt capabilities.
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JPMorgan (JPM) Partners With Trade Finance Provider Cleareye.ai
JPMorgan (JPM - Free Report) has formed a strategic alliance with Cleareye.ai, a financial technology firm focused on trade finance. Trade finance refers to the financial products offered by institutions that seek to facilitate global trade by reducing counterparty risk between importers and exporters.
JPM’s investment in Cleareye.ai leverages the ClearTrade platform, solving the challenges faced by trade finance (the industry is going through a digital transformation).
With the help of technological advancements, the ClearTrade platform streamlines the difficult due diligence process related to trade finance transactions and the huge number of physical documents that are still present in the industry today.
The ClearTrade solution helps banks in ensuring that they can continue to operate in this changing environment, which is being weighed down by a significantly increasing expense base.
Notably, over the past year, the ClearTrade platform was integrated into JPMorgan’s trade processing system. With the help of its alliance with Cleareye.ai, JPM will be able to further leverage the digitizing of documents using powerful image processing solutions with the ability to extract, validate and accurately classify unstructured data.
Stuart Roberts, the global head of trade and working capital for JPM, stated, “Digitizing trade finance documentation has the ability to provide real benefits to J.P. Morgan and our clients. Banks have grappled to solve the puzzle of paper and manual data entry in this business for many years and our alliance with Cleareye is taking meaningful steps towards solving the problem. The ClearTrade platform also helps us to accelerate and future-proof our clients’ business while reinvesting savings into enhancing controls and risk management.”
Mariya George, the CEO and co-founder for Cleareye, said, “J.P. Morgan maintains a gold standard for digital innovation while ensuring regulatory needs are met, and we are very excited about the ClearTrade implementation and go-live. This also reinforces the strategic alliance between our firms and the vision to digitize trade operations for banks across the globe.”
Over the past few years, JPMorgan has engaged in several strategic acquisitions that supported its fee income base and improved market share across products and services.
This May, it acquired Aumni and failed First Republic Bank (a FDIC-assisted deal). Last year, the company announced a deal to buy Renovite, while it acquired a 49% stake in Greece-based Viva Wallet and Global Shares. Likewise, in 2021, JPM announced several acquisitions. The notable ones are a 75% stake in Volkswagen's payment arm Volkswagen Financial Services, OpenInvest, a 40% stake in Brazil's C6 Bank, the U.K.-based robo-advisor Netmeg and 55ip.
These deals, along with others, are expected to keep supporting the bank's plan to diversify revenues, and expand the fee income product suite and consumer bank digitally.
Over the past six months, shares of JPMorgan have rallied 9.1% against a 3% decline recorded by the industry.
Image Source: Zacks Investment Research
At present, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Efforts by Other Firms
Tradeweb Markets Inc. (TW - Free Report) entered an agreement to acquire Yieldbroker, a prominent Australian trading platform, in an all-cash transaction valued at A$125 million. TW's deal with Yieldbroker is expected to close by the end of this year, subject to customary conditions and regulatory reviews.
BlackRock (BLK - Free Report) signed an agreement to acquire London-based Kreos Capital, a private debt provider. Closing of the transaction, still subject to customary regulatory and closing conditions, is expected in the third quarter of 2023.
The acquisition of Kreos will further bolster BlackRock's position as the global credit asset manager. The deal is also expected to expedite BLK's goal to provide its clients with a wide range of private market investment products and services. The deal will complement BlackRock's Global Credit business and their clients will have access to Kreos' additional private debt capabilities.