Podcast: JPM connects to French funds community Cartes Bancaires

Whitney McDonald 10:09:05
Music, whats up 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 by way of expertise 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. Immediately is August 20, 2024 becoming a member of me from JP Morgan is Mike lozenov. He’s right here to debate his world 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 in the present day. I’ve a bit of little bit of distinctive story. Most likely, at the present time, 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 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 workforce about eight years in the past, and now have run lots of the engineering platforms for our card issuing and service provider buying so I bought, like, a deep engineering background, however during the last 5 years, bought 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 contains main the technique and execution and full PNL accountability of our enterprise right here that gives service provider buying options to among the largest world shoppers, after which additionally small companies by way of 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 might have an important sort of mixture of background right here that I’m certain helps you with innovation. So earlier than we get into new expertise and what you’re centered on proper now. Possibly you might inform me a bit of bit about who you’re main, what your workforce is made up of, and sort of give us a bit of glimpse into what your workforce seems like.

Mike Lozanoff 10:11:32
Positive, certain. So, you already know, now we have being a world service provider purchase now we have a workforce that focuses on worldwide markets, and I’ve a workforce there centered on on our gear up and Asia. We now 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 already know, supply their companies as an middleman. You recognize 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 sometimes, groups centered on industrial gross sales. So how will we get the product and the way we wish to promote it? How will we wish to worth it? We speak to shoppers about it, a workforce very a lot centered on that. After which a workforce that will get lots of work as of late is targeted on our fee networks and authorities relations. So much can rather a lot can occur on this business and regulation differs by by nation and area. And so must have a workforce there that additionally focuses on that. After which clearly, you already know, 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 study much more of the enterprise aspect, which truly has me actually invigorated.

Whitney McDonald 10:12:57
Yeah, I’m certain that there’s by no means a uninteresting 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 high, making an attempt to bail it completely. Um, effectively, with regards to what you’re engaged on, what you’re innovating, possibly you might give us a bit of 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 beneath 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 sometimes, 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 now we have that on the market the place we’re actually going deep into our API and digital channels. Purchasers want various things in in the present day’s day and age, and how briskly they should rise up and working their. Velocity of entry to information and giving it to them in a kind issue that’s extra trendy has been a giant funding space for us. We’re additionally going into it a bit of 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, though most of us, you already know, could store on our telephones, however there’s loads of issues that that chat that means you purchase on-line, decide 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
Possibly 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 sort of simply talked about you might have the consumer interplay piece. Purchasers are acquainted with the JP Morgan model, however possibly speak by way of the variations there and the advantages and why that may be the trail that service provider takes. Nicely,

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 working it. We don’t outsource any of that relationship to a 3rd social gathering. We don’t white label another person’s expertise. It’s all us. And I feel a bit of bit that the gross sales workforce differentiation there’s, proper when you might have 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 level of simply belief, proper there a trusted identify, a trusted model, and we’re going to place, you already know, the agency’s status behind something we put in market. At instances, 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 subject, they prefer to leverage their agency, broad relationship in opposition to us, in order that there’s at all times aspect and a foul aspect to to what you might have 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 lots of protection, and we see on a regular basis, there’s totally different partnerships. There’s totally 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 may possibly sort of get a bit of 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 accountable for the entire journey. When issues are going nice, or if there’s a hiccup, you may,
Mike Lozanoff 10:16:41
yeah, completely. And it’s. It’s a posh factor. I feel the the merchandise I’ve, I’ve realized extra as I converse with retailers or giant 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 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 individual or one workforce to name, and the factor I’ve seen is, what’s saved me at JP Morgan for therefore 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 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 totally different, I don’t know, the totally different improvements come out. You’ve seen how the journey has advanced at JP Morgan, simply from being on the totally different groups that you’ve got been on. However possibly you may speak us by way of a bit of 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 sort of meet a few of that consumer want Positive.

Mike Lozanoff 10:17:49
Let’s see the place to begin. I feel among the issues which can be most fascinating currently, we spent lots of time simply maintaining with the regulation and ongoing fee reg. However that’s not the best stuff. I feel the newer issues now are one. I’m enthusiastic about how we’ve been digitizing our enterprise after which taking lots of insights and information property that now we have the place we are able to see one of many different benefits of being a serious financial institution processor. We now have an enormous shopper set of knowledge. How are all of the chase prospects which have bank cards or debit playing cards, spending their cash, even when they don’t course of with us, now we have entry to have a look at these sorts of issues and assist shoppers see how they could be evaluating their spend in opposition to different demographic prospects in that very same section. Or the instance I like to make use of is possibly serving to small companies, the place we are able to current them as a comparability software 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. Nicely, the place are others spending cash in several geographic areas round you? And might even show you how to perceive the place chances are you’ll wish 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 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 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 help handle your subscription billers, that you simply be your shoppers, that you simply invoice or your prospects, and in the event that they get declined, we are going to retry in your behalf and do various things that can assist you not lose that buyer. These are issues that was once 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 fascinating, in fact, is the thought behind the info. And naturally, you guys have a ton of knowledge that you simply’re accumulating. You simply talked by way of 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 shopper insights.

Mike Lozanoff 10:20:24
They’re, they’re, you already know, they get, you already know, what you at all times discover once you current a brand new product or a brand new perception is, like, you get a bit of little bit of, you already know, click on by way of curiosity at first, 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. Possibly I can inject a loyalty program or a advertising 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 right 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 world enterprise. You might have your groups in Europe, you might have the groups in us. You might have a world enterprise. You’re maintaining with totally different regulation. You’re maintaining with totally 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 simply’re centered on and prioritizing?

Mike Lozanoff 10:21:22
An fascinating one. Possibly 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 known as carp on care. We’ll be the primary American financial institution, truly, a part of the French banking system, the place we’ll be registered and have the ability to supply that, that card kind in instantly in France. And I feel it’s, you already know, it’s, consider it as an area debit community of types, like now we have within the US. They’ve that in French, and has giant spend on it, because it’s very favorable to retailers, as the price of that fee is sort of low. We’re doing that with among the latest expertise that we’ve constructed. We acquired an organization a number of years in the past that was a cloud switching expertise that we’ve now included into our full platform. The corporate was known 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 bought a fairly a bit of labor. We’re additionally taking among the finest property we’ve bought from actually making an attempt to sew in a robust digital onboarding for small companies. We did lots of that, and have had that in other places 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 giant, now we have a technique in to get to our companies, the one one which I feel is sort 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 purchasing 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 need to cope with, with that bodily in retailer system, their ERP techniques and stock. So the funding we’re sort 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 lots of that friction away from shoppers. So, you already know, that’s one I’m extraordinarily enthusiastic about we’re in all probability a yr into software program improvement and among the product improvement we’ve been speaking about at numerous totally 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 way of lots of these retailers, they usually’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 yet one more piece of that, that entire, 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 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 yr.

Whitney McDonald 10:24:38
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