LONDON: JPMorgan Chase & Co has made a strategic funding in Icon Options, a UK-based firm that advises and offers know-how to banks to assist them overhaul their digital funds programs, the businesses mentioned on Thursday.
Monetary phrases of the deal weren’t disclosed.
Icon will use the funding to develop the enterprise and develop its geographic attain, Simon Wilson, co-head of world funds options on the firm mentioned in an interview.
The funding comes amid a world acceleration in digital cost volumes, partly as a result of COVID-19 lockdowns which have pushed extra commerce and enterprise flows on-line.
The fallout of the pandemic has additionally elevated value pressures on banks, making them extra eager to digitize their providers in a bid to save cash.
On the similar time, banks and established cost corporations face elevated competitors from youthful and extra digital-savvy firms that aren’t burdened by legacy know-how.
“The banks are having to search out methods of slicing prices, however with the competitors on the market they will’t afford to only slash and burn,” Wilson mentioned. “They’re pressured to have a look at revolutionary methods to do issues. It’s merely not sustainable to stay on the associated fee base with the outdated know-how they’ve.”
Icon’s shoppers embrace HSBC Holdings Plc, Wells Fargo & Co and Citigroup Inc, in response to its web site.
Sara Castelhano, Europe, Center East and Africa head of funds, digital and options at JPMorgan wholesale funds, will be a part of Icon’s board of advisors, the businesses mentioned.
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