Deutsche Bank Joins Interbank Network
The Interbank Information Network run by JPMorgan Chase has added a new member to IIN. This network is one of the most extensive blockchain/cryptocurrency services ever created for financial markets, with more than 320 banking institutions operating in the system. Institutions send information to one another regarding global payments on blockchain. The endgame goal for the Interbank Information Network is to terminate all delays, which account for 1.5% of cross-border payments worldwide.
Participating banking institutions that are connected with the Interbank Information Network can instantaneously access information on transfers in the payment chain. JPMorgan’s Job is to act as the processer, governing over every corresponding bank and their informative dollar payments.
The Deutsche Bank gains the capability to enable superior services for clients, which include lower processing fee’s on payments and shorter delays on payments. This is a welcome change for clients with this banking institution, which has seen complaints regarding their slow processing times and substantial fees. Clients operating on Deutsche Bank will now have better capabilities for cash management on their trader accounts.
The Public Statements
Both JPMorgan and Deutsche Bank have spoken publicly on this announcement. The Head of Cash Management for Deutsche Bank, Ole Matthiessen, stated: “Our competitors are not just the other banks, it’s also new players in the market. We need to become efficient enough to provide seamless real-time and digital process. Joining IIN is directionally a crucial step for us because it will help drive customer satisfaction.”
JPMorgan Chase had their Head of Payments, TakisGeorgakopoulos, spoke about Deutsche Bank joining the Interbank Information Network. He stated: “A network that only has JPMorgan’s clients will have considerable natural limitations. It would mean that all of these other smaller banks would still need to have bifurcated procedures. What they do with JPMorgan and what they do with other banks would still have to be different. Deutsche will hopefully be the first of several other large banks that are going to help us drive towards ubiquity. This is a pre-requisite for the success of the network.”
It should be noted that only 65 of the 320 members in the Interbank Information Network are live on the service. The additional 225 have agreed to participate in the service by the end of the year.