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JPMorgan (JPM) Offers Account Validation Services to Treasury
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JPMorgan (JPM - Free Report) has been selected by the U.S Treasury Department to provide account validation services for federal government agencies, securing an important role in the drive toward payment integrity and reducing improper payments. This partnership, awarded after a rigorous selection process, underlines the importance of account validation in ensuring the Treasury’s commitment to financial accuracy. It is valid for a minimum of five years.
The scale and size of JPM bring a unique advantage to this venture. With an extensive network, a daily transaction volume averaging more than $9 trillion and robust technological infrastructure equip the company to efficiently validate critical payment information for the federal government, protecting funds from potential fraud or clerical errors.
In fiscal 2022, the Fiscal Service disbursed 1.4 billion payments aggregating to $5.27 trillion for federal agencies. Nonetheless, improper payments, including overpayments, underpayments and payments that should not have been made, totaled $247 billion. These discrepancies not only lead to financial losses but also erode public trust in government services. JPMorgan’s advanced technology will act as a barrier against such concerns, ensuring that rightful recipients receive their funds promptly and accurately.
Takis Georgakopoulos, JPM’s Global Head of Payments said, “This is a significant testament to our capabilities and it is particularly gratifying that this work will help to provide money to Americans faster, safer, and more accurately while also saving taxpayer dollars.”
Notably, the company’s involvement goes beyond this particular assignment. The bank has been advising the Treasury Department in its digital transformation journey, aiding in the modernization of payment systems. This reflects JPMorgan’s commitment to advancing financial technologies, bolstering government operations and fortifying the integrity of public finances.
Ally Financial Inc. (ALLY - Free Report) launched Ally.ai, which is a proprietary, cloud-based artificial intelligence (AI) platform that has the functionality of traditional and generative AI tools, along with specialized human touch and data security protections. The platform will allow ALLY to integrate any AI capability into business operations at an enterprise scale.
ALLY’s chief executive officer, Jeff Brown, stated, “Generative AI has the potential to be a game-changer in financial services and global business in general. As a digital-first company, we are going to do it right with AI – exploring the technology in a responsible manner with core principles and controls firmly in place.”
In terms of AI, Ally Financial focuses on problem-solving and future scalability with significant importance on human training, feedback and oversight.
Citigroup Inc. (C - Free Report) rolled out a set of functionalities as part of its Treasury and Trade Solutions services. The four payment solutions are designed to improve the client experience that financial institutions (FIs) offer to their end users. These capabilities can be used with less or no implementation work or technology build.
The new set of solutions includes extending the capabilities of Citi’s 24/7 USD clearing for FIs to include payments to companies and individuals. This will help FIs to make commercial payments (payments that are handled for the retail and corporate clients of the banks) in addition to bank-to-bank payments. The new capability will cater to more than 100 FI clients that currently use Citi’s 24/7 USD clearing service since its launch in late 2022.
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JPMorgan (JPM) Offers Account Validation Services to Treasury
JPMorgan (JPM - Free Report) has been selected by the U.S Treasury Department to provide account validation services for federal government agencies, securing an important role in the drive toward payment integrity and reducing improper payments. This partnership, awarded after a rigorous selection process, underlines the importance of account validation in ensuring the Treasury’s commitment to financial accuracy. It is valid for a minimum of five years.
The scale and size of JPM bring a unique advantage to this venture. With an extensive network, a daily transaction volume averaging more than $9 trillion and robust technological infrastructure equip the company to efficiently validate critical payment information for the federal government, protecting funds from potential fraud or clerical errors.
In fiscal 2022, the Fiscal Service disbursed 1.4 billion payments aggregating to $5.27 trillion for federal agencies. Nonetheless, improper payments, including overpayments, underpayments and payments that should not have been made, totaled $247 billion. These discrepancies not only lead to financial losses but also erode public trust in government services. JPMorgan’s advanced technology will act as a barrier against such concerns, ensuring that rightful recipients receive their funds promptly and accurately.
Takis Georgakopoulos, JPM’s Global Head of Payments said, “This is a significant testament to our capabilities and it is particularly gratifying that this work will help to provide money to Americans faster, safer, and more accurately while also saving taxpayer dollars.”
Notably, the company’s involvement goes beyond this particular assignment. The bank has been advising the Treasury Department in its digital transformation journey, aiding in the modernization of payment systems. This reflects JPMorgan’s commitment to advancing financial technologies, bolstering government operations and fortifying the integrity of public finances.
So far this year, shares of this Zacks Rank #3 (Hold) company have rallied 10% against the industry’s 8.7% decline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Other Banks Offering New Services
Ally Financial Inc. (ALLY - Free Report) launched Ally.ai, which is a proprietary, cloud-based artificial intelligence (AI) platform that has the functionality of traditional and generative AI tools, along with specialized human touch and data security protections. The platform will allow ALLY to integrate any AI capability into business operations at an enterprise scale.
ALLY’s chief executive officer, Jeff Brown, stated, “Generative AI has the potential to be a game-changer in financial services and global business in general. As a digital-first company, we are going to do it right with AI – exploring the technology in a responsible manner with core principles and controls firmly in place.”
In terms of AI, Ally Financial focuses on problem-solving and future scalability with significant importance on human training, feedback and oversight.
Citigroup Inc. (C - Free Report) rolled out a set of functionalities as part of its Treasury and Trade Solutions services. The four payment solutions are designed to improve the client experience that financial institutions (FIs) offer to their end users. These capabilities can be used with less or no implementation work or technology build.
The new set of solutions includes extending the capabilities of Citi’s 24/7 USD clearing for FIs to include payments to companies and individuals. This will help FIs to make commercial payments (payments that are handled for the retail and corporate clients of the banks) in addition to bank-to-bank payments. The new capability will cater to more than 100 FI clients that currently use Citi’s 24/7 USD clearing service since its launch in late 2022.