About J.P. Morgan4Our clients are at the heart of all we doFor the fourth year in a rowSWIFT for Corporates Bank of the Year2009, 2010, 2011, 2012“Our aim is to be the world’s most trusted and respectedfinancial services institution.”- Jamie Dimon, Chairman and CEO• Fortress Balance Sheet; 11% Basel I Tier 1 common ratio• Reorganized global wholesale business around clients to better serve them:50,000 employees serving 76,000 clients in over 100 markets.• FI and Corporate clients using SWIFT & standardsbenefit from this core philosophy: from CEOto each employee, we are here to serve clients.
Why MyStandards?5It must be easy to do business with J.P. Morgan.Specific to standards, we recognise client needs differently:• where we are their primary bank• multi-banked clients require a standard offer from us and competitorsWhat does “easy” mean in a SWIFT & standards context?• Remove the entrance barriers presented by use of standards• Accelerate the realisation of benefits (economic, efficiency)• Drive simplicity of language and transparency of key informationJPMorgan leads use of MyStandards to deliver a better client experience:- Pilot Member; 1st bank to publish usage guidelines- Driving “co-opetition” / competitor partnership for multi-banked clients- 1st bank to contribute content to MyStandards “Phase 2”: testing portalMyStandards helps us deliver our client promise.
6Driving a better client experienceThe Client ExperienceHow astandardworks MarketPracticesJPMspecificsbusinesscontextfor useMyStandardsToday Tomorrow•Incorporation of more marketpractices• More competitors upload theirpractices in a unified fashion:allowing customers to seeapplied use of any standardacross all service providers• Further embedding within JPMorgan• Medium-term: allow counterpartiesto test against rules described inMyStandards (SWIFT Testing Portal)OtherBankspecificsJPMorgan use and expertise
7Corporate and Investment BankTransactionServicesSecuritiesServicesInvestmentBankIntroduction of MyStandards% ofSWIFT TrafficMT3sMT5,ISO15022MT1,2,9, ISO20022MT3xxMT5xxA tool to help:• ConsumeStandards ReleasesComparisons new to old/existingUser Handbook• DistributeExport (PDF, XML Schema)Client-specsAll in standard format• Engage counterparties & marketBe part of change processRight stuff to the right peopleReal feedback from real usersMT56xISO15022ISO20022MT1xxMT2xxMT3xxMT4xxMT7xxMT9xxISO20022When we help our clients, we help ourselvesJ.P. Morgan Standards Usage
8Immediate benefit: Annual Standards ReleasesStandards Release Lifecycle: July Prior Year -> November current yearSWIFTJPMorganSR2012SR2013Nov 2012SR2012is Live2013ReleaseLiveJuly 2012High-levelSR2013 infoNov 2012:SR2013 changesapprovedDec 2012SR2013 Guide &Formatting RulesFeb 2013Update to SR2013Guide & FormattingJuly 2013SR2013 UserHandbookJPM business engagement on above activities.SWIFT SharedServicesProactive & Reactiveengagement with techHelp understandrequirementsCompare SR2013to SR2012Compare 2013to SR2012Facilitate Network TestingProductManagement(input to SR2013)BusinessAnalysisTechnology(SR2012 build & QA)Finish Build->QA-> Livevote/consult Write Requirements Verify req. Build Finish Build->QA-> LiveCentral teams at any bank could exceed 250+ applications, interactingto help them understand releases, timelines, and their impacts.Each application followsits own change process
9Benefits from experienceObvious HiddenInventory of internal stakeholdersUser registration identifies those whostep out and become visible toadministrators, specifically for thestandards they’re interested inBudget and ResourcesBetter visibility and insight of changeand the impact on internal systems.System inventory being built andidentifies standards used by eachStandardised Toolhas become a self-service approachrather than relying on shared services todisseminate and share informationSingle source of truthfor all teams in the Bank and our clients– accessible by all anywhere, any time.10min interaction x # of applications x app functions (BA, product)MyStandardssaves us TIME=Duplication of cost & effort
10MyStandards Rollout at JPMorganWhat’s Next:Global Governance Team that identifies opportunities and guidance to onboard more internal teamsLeverage more technology partners to incorporate MyStandards exports (XML schema) into developmentContinue engaging in market practice groups to use MyStandards in the mission of more standardisationRollout with SR2013Current Use
11Challenges and opportunitiesExpressing business rules/logicHow many levels of detail to express?ISO Message typeGeographyInstrument type (US ACH)Sub-instrument type (CCD+, PPD)MT 1xxGeography (of account or currency?)CurrencyInstrument typeInternal challenges:New user registration – onboarding;requires organisation-authored FAQAdministration/maintenanceIdentify single owner of contentWe need a workflow required formaintenanceWe are pursuing:-Helpful conversations with SWIFT on Governance of MyStandards for large users-Bilateral conversations with peers on MyStandards – agreeing to use commonpractices as a model to populate usage guidelines-The next phase: helping SWIFT form a Testing Portal for content in MyStandards