J.P. Morgan is becoming a member of French funds community Cartes Bancaires, Mike Lozanoff, managing director and international head of service provider companies at J.P. Morgan, tells Financial institution Automation Information on this episode of “The Buzz” podcast.
The financial institution is tapping cloud-based Renovite to construct the connection to the community, Lozanoff says. The financial institution acquired Renovite in 2022 and is utilizing the cloud-based resolution and its workforce to construct the tech, he says.
“We’ll be the primary American financial institution really a part of the French banking system, the place we’ll be registered and in a position to supply that card sort immediately in France,” he says.
Cartes Bancaires is “favorable to retailers” as a community as the price of fee is low, Lozanoff says. The financial institution plans to have the cardboard providing accessible by 2025.
Hear as Lozanoff discusses updates to JPM’s service provider buying enterprise, together with worldwide efforts, e-commerce innovation and in-store choices.
Early-bird registration is now accessible for the inaugural Financial institution Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Uncover the newest developments in AI and automation in banking. Register right here and apply to talk right here.
The next is a transcript generated by AI know-how that has been calmly edited however nonetheless accommodates errors.
Whitney McDonald 10:09:05
Music, hey and welcome to The Buzz a financial institution automation information podcast. This episode of The thrill is dropped at 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 companies professionals centered on enterprise optimization via 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 identify 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 companies. 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 as we speak. I’ve slightly little bit of distinctive story. In all probability, nowadays, I began my profession out of school with JP Morgan, I assume 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 understand, 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 workforce about eight years in the past, and now have run a whole lot of the engineering platforms for our card issuing and service provider buying so I acquired, like, a deep engineering background, however over the past 5 years, acquired the prospect to run product and engineering for our enterprise enterprise, after which lately, simply was elevated to be the worldwide head of service provider companies 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 number of the largest international shoppers, after which additionally small companies via our Chase department community.
Whitney McDonald 10:11:09
Nice. Nicely, thanks once more for being right here along with your background in engineering after which, in fact, management as effectively. You have got a fantastic sort of mixture of background right here that I’m positive helps you with innovation. So earlier than we get into new know-how and what you’re centered on proper now. Possibly you may inform me slightly bit about who you’re main, what your workforce is made up of, and sort of give us slightly glimpse into what your workforce seems to be like.
Mike Lozanoff 10:11:32
Certain, positive. So, you understand, we now have being a world service provider purchase we now have a workforce that focuses on worldwide markets, and I’ve a workforce there centered on on our gear up and Asia. Now we have groups within the US which can be centered on our small enterprise distribution and the options there, in addition to our enterprise section, which may 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 understand, supply their companies as an middleman. You recognize it’s a must to handle these relationships, and lots of of them have relationships with the financial institution. So fairly must navigate that. Fairly advanced now and again, groups centered on business gross sales. So how can we get the product and the way we need to promote it? How can we need to value it? We discuss to shoppers about it, a workforce very a lot centered on that. After which a workforce that will get a whole lot of work as of late is targeted on our fee networks and authorities relations. Loads can rather a lot can occur on this trade and regulation differs by by nation and area. And so must have a workforce there that additionally focuses on that. After which clearly, you understand, my my consolation in engineering, I’ve that workforce as all as effectively centered. However of late, that’s sort of the place I grew up and have a consolation zone. So I’m attending to be taught much more of the enterprise aspect, which really has me actually invigorated.
Whitney McDonald 10:12:57
Yeah, I’m positive 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 positive, is simply the the cherry on high, making an attempt to bail it completely. Um, effectively, in relation to what you’re engaged on, what you’re innovating, perhaps you may give us slightly 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 sort of innovate round that. What’s the main focus?
Mike Lozanoff 10:13:25
No, so we’ve one of many issues we’ve been we’re an extended standing service provider acquirer, operated below the model, and lots of of our shoppers, you understand, nonetheless use the model fee tech. That’s what our contracts nonetheless state. And, you understand, being a long run processor, it’s a must to reinvent your self now and again, and we’ve been doing that now over the previous few years, placing some huge cash into the platform and re skinning our providing as a commerce resolution. And we now have that on the market the place we’re actually going deep into our API and digital channels. Shoppers want various things in as we speak’s day and age, and how briskly they should stand up and working their. Velocity of entry to information and giving it to them in a kind issue that’s extra fashionable has been an enormous funding space for us. We’re additionally going into it slightly bit deeper into in retailer funds. We’ve been a energy participant in E commerce and, you understand, in on-line and on-line retailer recurring funds, however getting deeper as a financial institution processor within the in retailer, funds is an enormous funding for us. There’s there’s nonetheless an incredible quantity of spend in retailer, though most of us, you understand, could store on our telephones, however there’s loads of issues that that chat that means you purchase on-line, choose up in retailer, and the options are fairly sophisticated, and retailers like our model, in order that they need to do enterprise with us.
Whitney McDonald 10:14:47
Possibly we may 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 just sort of simply talked about you’ve the consumer interplay piece. Shoppers are accustomed to the JP Morgan model, however perhaps discuss via the variations there and the advantages and why that might be the trail that service provider takes. Nicely,
Mike Lozanoff 10:15:09
I believe it’s whether or not it’s a profit or the way you need to body it. The factor I believe is exclusive with us is, you understand, it’s our model, our methods, our engineers, our service all working it. We don’t outsource any of that relationship to a 3rd celebration. We don’t white label another person’s know-how. It’s all us. And I believe slightly bit that the gross sales workforce differentiation there’s, proper when you’ve an issue, we stand behind it, and our corporations been round for a very long time, and can, will climate any storm. So I believe one which’s a very good level of simply belief, proper there a trusted identify, a trusted model, and we’re going to place, you understand, the agency’s status behind something we put in market. At occasions, it can be a troublesome factor, as a result of the agency status or model can be utilized in opposition to you. So I wish to say funds is a really passionate matter. When corporations have any situation, they wish to leverage their agency, broad relationship in opposition to us, in order that there’s at all times a very good aspect and a nasty aspect to to what you’ve as a being a processor,
Whitney McDonald 10:16:12
yeah, however I like what you mentioned there about proudly owning the entire journey. You’re not outsourcing any of it. I imply, we do a whole lot 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 could sort of get slightly bit messy. So having all of it in home permits for that to all be in a single place. You recognize, you’re, you’re chargeable for the entire journey. When issues are going nice, or if there’s a hiccup, you’ll be able to,
Mike Lozanoff 10:16:41
yeah, completely. And it’s. It’s a fancy factor. I believe the the merchandise I’ve, I’ve discovered extra as I converse with retailers or massive shoppers, is, you understand, they aren’t, they aren’t funds specialists or transaction specialists, proper? They only need to run their enterprise. So the extra we are able to deliver options to them which can be, are extra complete, is one thing that they’re they’re listening to. And once more, in case you have one particular person or one workforce to name, and the factor I’ve seen is, what’s stored me at JP Morgan for therefore lengthy, you understand, if there is a matter, we swarm to it and we’ll repair it. And that’s the factor, I believe, that’s, you understand, additionally resonates with shoppers which have an extended standing relationships. They know we’ll be there.
Whitney McDonald 10:17:21
Now, talking of getting the the flexibility to downside clear up. 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 advanced at JP Morgan, simply from being on the completely different groups that you’ve got been on. However perhaps you’ll be able to discuss us via slightly little bit of some tasks that you just’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 sort of meet a few of that consumer want Certain.
Mike Lozanoff 10:17:49
Let’s see the place to begin. I believe a number of the issues which can be most attention-grabbing recently, we spent a whole lot of time simply maintaining with the regulation and ongoing fee reg. However that’s not the best stuff. I believe the newer issues now are one. I’m enthusiastic about how we’ve been digitizing our enterprise after which taking a whole lot of insights and information property that we now have the place we are able to see one of many different benefits of being a significant financial institution processor. Now we have an enormous client set of information. 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 now have entry to take a look at these sorts of issues and assist shoppers see how they might be evaluating their spend in opposition to different demographic clients in that very same section. Or the instance I like to make use of is perhaps serving to small companies, the place we are able to current them as a comparability software that, and I believe we name consumer Insights, the place we are saying, let’s say you’re a barber store and also you need to open a second location. Nicely, the place are others spending cash in numerous geographic areas round you? And may even allow you to perceive the place you might need to open your subsequent door. These are various things. Issues that we’re utilizing to in a position to make use of information to assist in giving shoppers the flexibility to develop their enterprise. The opposite one, I see that we’re having to essentially problem ourselves about not simply being a part of the transaction move, however of the consumer’s journey. So the extra we’re getting in a position to 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 may also help handle your subscription billers, that you just be your shoppers, that you just invoice or your clients, and in the event that they get declined, we’ll retry in your behalf and do various things that can assist you not lose that buyer. These are issues that was once simply, you understand, suppose 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 concept behind the info. And naturally, you guys have a ton of information that you just’re amassing. You simply talked via that, however with the ability to faucet the info and people insights, such as you mentioned, 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 understand, they get, you understand, what you at all times discover once you current a brand new product or a brand new perception is, like, you get slightly little bit of, you understand, click on via curiosity to start with, after which it’s a must to watch it proper. What, you understand, what I what I believe could also be subsequent is, hey, that perception is neat, however now I’ve to show that perception into an motion. Possibly I can inject a loyalty program or a advertising marketing campaign. I believe persevering with to drag 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 believe that’s the proper segue to the following query, which is, what are you centered on proper now? I do know that you just talked about that is, this can be a international enterprise. You have got your groups in Europe, you’ve the groups in us. You have got 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 latest months and in coming months that you just’re centered on and prioritizing?
Mike Lozanoff 10:21:22
An attention-grabbing one. Possibly I’ll leap 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 to supply that, that card sort in immediately in France. And I believe it’s, you understand, it’s, consider it as an area debit community of kinds, like we now have 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 number 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 workforce 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 acquired a fairly a bit of labor. We’re additionally taking a number of the finest property we’ve acquired from actually making an attempt to sew in a robust digital onboarding for small companies. We did a whole lot of that, and have had that elsewhere 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 now have a technique in to get to our companies, the one one which I believe is sort of a necessity. I discussed this in retailer piece. So you understand, simply coming from, you understand, a tech background, what I didn’t at all times understand, and it’s now ruined looking 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’m wondering who the processor is, however that the complexity of what retailers must take care of, with that bodily in retailer system, their ERP methods and stock. So the funding we’re sort of making, and you understand, 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 a whole lot of that friction away from shoppers. So, you understand, that’s one I’m extraordinarily enthusiastic about we’re most likely a yr into software program growth and a number of the product growth we’ve been speaking about at numerous completely different conferences, however I see it actually going reside 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 via a whole lot 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 understand, 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 are able to deliver that an increasing number of in home?
Whitney McDonald 10:24:21
Yeah. I imply, that undoubtedly is smart. So that you mentioned hopes for that to go reside 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 yr.
Whitney McDonald 10:24:38
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