Podcast: JPM connects to French funds community Cartes Bancaires

Whitney McDonald 10:09:05
Music, hiya and welcome to The Buzz a financial institution automation information podcast. This episode of The excitement is delivered to you by financial institution automation summit Europe 2024 which takes place October 7 and eighth in Frankfurt, Germany. This occasion is tailor-made to resonate with monetary providers professionals centered on enterprise optimization by know-how and automation learn to overcome implementation challenges by listening to first hand from C degree executives from establishments together with JP Morgan, Barclays, Starling financial institution and extra. There’s no higher place to get a learn on the competitors than at Financial institution automation summit Europe 2024 on October 7 and eighth. Register now at Financial institution automation summit.com my title is Whitney McDonald and I’m the editor of financial institution automation Information. At this time is August 20, 2024 becoming a member of me from JP Morgan is Mike lozenov. He’s right here to debate his international efforts within the service provider buying enterprise at JP Morgan, together with tapping right into a French community and boosting in retailer providers. Thanks for becoming a member of us, Mike

Mike Lozanoff 10:10:01
first. Thanks Whitney, for having me on I’m excited to be right here with you at this time. I’ve just a little little bit of distinctive story. Most likely, these days, I began my profession out of school with JP Morgan, I suppose it was financial institution one, and there have been mergers alongside the best way. And I spent, like, the primary 12 years in engineering in our bank card issuing enterprise, you already know, from working second shift as a as an operator, to writing code in our card issuing enterprise, after which moved over to our Service provider buying group about eight years in the past, and now have run plenty of the engineering platforms for our card issuing and service provider buying so I obtained, like, a deep engineering background, however during the last 5 years, obtained the possibility to run product and engineering for our enterprise enterprise, after which lately, simply was elevated to be the worldwide head of service provider providers for JP Morgan. In order that remit consists of main the technique and execution and full PNL accountability of our enterprise right here that gives service provider buying options to a few of the largest international shoppers, after which additionally small companies by our Chase department community.

Whitney McDonald 10:11:09
Nice. Effectively, thanks once more for being right here together with your background in engineering after which, in fact, management as effectively. You will have an excellent form of mixture of background right here that I’m certain helps you with innovation. So earlier than we get into new know-how and what you’re centered on proper now. Perhaps you would inform me just a little bit about who you’re main, what your group is made up of, and form of give us just a little glimpse into what your group appears like.

Mike Lozanoff 10:11:32
Certain, certain. So, you already know, we’ve got being a world service provider purchase we’ve got a group that focuses on worldwide markets, and I’ve a group there centered on on our gear up and Asia. We have now groups within the US which might be centered on our small enterprise distribution and the options there, in addition to our enterprise section, which could be fairly advanced in enterprise funds, whether or not you’re promoting on to the most important retailers on the planet or distributing to companions and fee service suppliers that you already know, supply their providers as an middleman. it’s important to handle these relationships, and lots of of them have relationships with the financial institution. So fairly need to navigate that. Fairly advanced every so often, groups centered on business gross sales. So how can we get the product and the way we wish to promote it? How can we wish to worth it? We speak to shoppers about it, a group very a lot centered on that. After which a group that will get plenty of work as of late is targeted on our fee networks and authorities relations. Loads can lots can occur on this trade and regulation differs by by nation and area. And so have to have a group there that additionally focuses on that. After which clearly, you already know, my my consolation in engineering, I’ve that group as all as effectively centered. However of late, that’s form of the place I grew up and have a consolation zone. So I’m attending to study much more of the enterprise aspect, which really has me actually invigorated.

Whitney McDonald 10:12:57
Yeah, I’m certain that there’s by no means a boring second from the innovation to maintaining with consumer wants, after which the regulation piece of the puzzle, I’m certain, is simply the the cherry on prime, making an attempt to bail it completely. Um, effectively, with regards to what you’re engaged on, what you’re innovating, possibly you would give us just a little perception into what you’re centered on proper now. How’s the service provider, buying enterprise evolving? What are you centered on? What are the consumer wants? And the way do you form of innovate round that. What’s the main target?

Mike Lozanoff 10:13:25
No, so we’ve one of many issues we’ve been we’re a protracted standing service provider acquirer, operated underneath the model, and lots of of our shoppers, you already know, nonetheless use the model fee tech. That’s what our contracts nonetheless state. And, you already know, being a long run processor, it’s important to reinvent your self every so often, and we’ve been doing that now over the previous couple of years, placing some huge cash into the platform and re skinning our providing as a commerce resolution. And we’ve got that on the market the place we’re actually going deep into our API and digital channels. Shoppers want various things in at this time’s day and age, and how briskly they should stand up and working their. Pace of entry to knowledge and giving it to them in a type issue that’s extra fashionable has been a giant funding space for us. We’re additionally going into it just a little bit deeper into in retailer funds. We’ve been a power participant in E commerce and, you already know, in on-line and on-line retailer recurring funds, however getting deeper as a financial institution processor within the in retailer, funds is a giant funding for us. There’s there’s nonetheless an incredible quantity of spend in retailer, although most of us, you already know, could store on our telephones, however there’s loads of issues that that chat that manner you purchase on-line, choose up in retailer, and the options are fairly sophisticated, and retailers like our model, so that they wish to do enterprise with us.

Whitney McDonald 10:14:47
Perhaps we might take that concept of being a financial institution processor a step additional. What’s the distinction between being a financial institution processor and a fee processor? What’s the profit there? I do know that you simply form of simply talked about you have got the consumer interplay piece. Shoppers are aware of the JP Morgan model, however possibly speak by the variations there and the advantages and why that may be the trail that service provider takes. Effectively,

Mike Lozanoff 10:15:09
I feel it’s whether or not it’s a profit or the way you wish to body it. The factor I feel is exclusive with us is, you already know, it’s our model, our techniques, our engineers, our service all operating it. We don’t outsource any of that relationship to a 3rd get together. We don’t white label another person’s know-how. It’s all us. And I feel just a little bit that the gross sales group differentiation there may be, proper when you have got an issue, we stand behind it, and our corporations been round for a very long time, and can, will climate any storm. So I feel one which’s a great level of simply belief, proper there a trusted title, a trusted model, and we’re going to place, you already know, the agency’s fame behind something we put in market. At occasions, it will also be a troublesome factor, as a result of the agency fame or model can be utilized towards you. So I wish to say funds is a really passionate subject. When corporations have any situation, they prefer to leverage their agency, vast relationship towards us, in order that there’s at all times a great aspect and a foul aspect to to what you have got as a being a processor,

Whitney McDonald 10:16:12
yeah, however I like what you stated there about proudly owning the entire journey. You’re not outsourcing any of it. I imply, we do plenty of protection, and we see on a regular basis, there’s completely different partnerships. There’s completely different somebody owns this a part of the journey. Somebody owns this, who owns this half? And if there’s points with the fee, it might form of get just a little bit messy. So having all of it in home permits for that to all be in a single place. , you’re, you’re liable for the entire journey. When issues are going nice, or if there’s a hiccup, you possibly can,
Mike Lozanoff 10:16:41
yeah, completely. And it’s. It’s a posh factor. I feel the the merchandise I’ve, I’ve discovered extra as I converse with retailers or massive shoppers, is, you already know, they aren’t, they aren’t funds specialists or transaction specialists, proper? They simply wish to run their enterprise. So the extra we will convey options to them which might be, are extra complete, is one thing that they’re they’re listening to. And once more, when you’ve got one particular person or one group to name, and the factor I’ve seen is, what’s stored me at JP Morgan for thus lengthy, you already know, if there is a matter, we swarm to it and we’ll repair it. And that’s the factor, I feel, that’s, you already know, additionally resonates with shoppers which have a protracted standing relationships. They know we’ll be there.

Whitney McDonald 10:17:21
Now, talking of getting the the flexibility to drawback remedy. You’ve been at JP Morgan a very long time. You’ve seen the completely different, I don’t know, the completely different improvements come out. You’ve seen how the journey has developed at JP Morgan, simply from being on the completely different groups that you’ve got been on. However possibly you possibly can speak us by just a little little bit of some initiatives that you simply’ve been concerned with as of late. What options are you bringing to market? What are you engaged on? What are you investing in to form of meet a few of that consumer want Certain.

Mike Lozanoff 10:17:49
Let’s see the place to start out. I feel a few of the issues which might be most attention-grabbing currently, we spent plenty of time simply maintaining with the regulation and ongoing fee reg. However that’s not the good stuff. I feel the newer issues now are one. I’m enthusiastic about how we’ve been digitizing our enterprise after which taking plenty of insights and knowledge property that we’ve got the place we will see one of many different benefits of being a significant financial institution processor. We have now an enormous client set of knowledge. How are all of the chase clients which have bank cards or debit playing cards, spending their cash, even when they don’t course of with us, we’ve got entry to take a look at these sorts of issues and assist shoppers see how they might be evaluating their spend towards different demographic clients in that very same section. Or the instance I like to make use of is possibly serving to small companies, the place we will current them as a comparability instrument that, and I feel we name consumer Insights, the place we are saying, let’s say you’re a barber store and also you wish to open a second location. Effectively, the place are others spending cash in numerous geographic areas round you? And may even provide help to perceive the place you could wish to open your subsequent door. These are various things. Issues that we’re utilizing to in a position to make use of knowledge to assist in giving shoppers the flexibility to develop their enterprise. The opposite one, I see that we’re having to actually problem ourselves about not simply being a part of the transaction move, however of the consumer’s journey. So the extra we’re getting capable of spend in areas round serving to them take different elements of their enterprise, whether or not that’s payroll and constructing a payroll service that’s built-in for our small enterprise resolution, or giving them one thing to assist them with their Let’s see your subscription consumer. We’re placing logic in to say we will help handle your subscription billers, that you simply be your shoppers, that you simply invoice or your clients, and in the event that they get declined, we are going to retry in your behalf and do various things that will help you not lose that buyer. These are issues that was simply, you already know, assume issues {that a} consumer must handle, or a buyer would handle, and now we’re making an attempt to construct software program on behalf of them.

Whitney McDonald 10:19:57
Now, one of many issues that’s attention-grabbing, in fact, is the thought behind the info. And naturally, you guys have a ton of knowledge that you simply’re amassing. You simply talked by that, however having the ability to faucet the info and people insights, such as you stated, the geography or evaluating spending on the patron aspect or small enterprise aspect, that’s one thing that’s key proper now. Are you seeing elevated demand for that from the consumer base proper now? Are they utilizing these options? Are they tapping one thing like client insights.

Mike Lozanoff 10:20:24
They’re, they’re, you already know, they get, you already know, what you at all times discover if you current a brand new product or a brand new perception is, like, you get just a little little bit of, you already know, click on by curiosity to start with, after which it’s important to watch it proper. What, you already know, what I what I feel could also be subsequent is, hey, that perception is neat, however now I’ve to show that perception into an motion. Perhaps I can inject a loyalty program or a advertising and marketing marketing campaign. I feel persevering with to tug the what’s subsequent? How will it assist the enterprise? Is the place we’ll proceed to innovate, make investments.

Whitney McDonald 10:20:53
I feel that’s the proper segue to the subsequent query, which is, what are you centered on proper now? I do know that you simply talked about that is, it is a international enterprise. You will have your groups in Europe, you have got the groups in us. You will have a world enterprise. You’re maintaining with completely different regulation. You’re maintaining with completely different funds, rails and networks. What are you centered on proper now? What has your consideration for? What has had your consideration in current months and in coming months that you simply’re centered on and prioritizing?

Mike Lozanoff 10:21:22
An attention-grabbing one. Perhaps I’ll soar internationally for a bit. We, we did announce being a big European processor as effectively, the place one merchandise we’re doing is we’re constructing connectivity right into a French native community referred to as carp on care. We’ll be the primary American financial institution, really, a part of the French banking system, the place we’ll be registered and be capable of supply that, that card sort in immediately in France. And I feel it’s, you already know, it’s, consider it as a neighborhood debit community of types, like we’ve got within the US. They’ve that in French, and has massive spend on it, because it’s very favorable to retailers, as the price of that fee is kind of low. We’re doing that with a few of the latest know-how that we’ve constructed. We acquired an organization just a few years in the past that was a cloud switching know-how that we’ve now included into our full platform. The corporate was referred to as renovate, and we’re doing it with that group so it’s a full cloud resolution. It’s weaved into our goal commerce platform, and we hope to be promoting that in 2025 that’s obtained a fairly a bit of labor. We’re additionally taking a few of the finest property we’ve obtained from actually making an attempt to sew in a robust digital onboarding for small companies. We did plenty of that, and have had that somewhere else throughout our our software program stack. We’re actually making an attempt to get all of it into this commerce platform. So taking all of the digital property and ensuring, whether or not you’re small, medium or massive, we’ve got a method in to get to our providers, the one one which I feel is form of a necessity. I discussed this in retailer piece. So you already know, simply coming from, you already know, a tech background, what I didn’t at all times notice, and it’s now ruined searching for me, being a part of a service provider buying enterprise, as a result of I’m going in and I have a look at the terminal and I ponder who the processor is, however that the complexity of what retailers need to cope with, with that bodily in retailer gadget, their ERP techniques and stock. So the funding we’re form of making, and you already know, our we’re calling it our omni channel funding, the place we’re going to begin to personal the software program functions on these terminals that can work natively with our on-line on-line interface will assist to take plenty of that friction away from shoppers. So, you already know, that’s one I’m extraordinarily enthusiastic about we’re in all probability a 12 months into software program growth and a few of the product growth we’ve been speaking about at numerous completely different conferences, however I see it actually going dwell in 2025 and that’s going to be a brand new channel for us, as a result of we’ve at all times distributed service provider buying by plenty of these retailers, and so they’ll proceed to be. Strategic companions of ours, however we’re additionally tiptoeing into it ourselves to see, you already know, can we play in that market as effectively,

Whitney McDonald 10:24:10
to personal one more piece of that, that complete, the entire worth

Mike Lozanoff 10:24:14
chain and that and that headache for shoppers, how can we proceed to take that and see how we will convey that an increasing number of in home?

Whitney McDonald 10:24:21
Yeah. I imply, that positively is sensible. So that you stated hopes for that to go dwell 2025
Mike Lozanoff 10:24:27
That’s proper, we’re actively speaking to shoppers now and constructing a pipeline, however yeah, we’ll actually begin to get that introduced in North America subsequent 12 months.

Whitney McDonald 10:24:38
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