JPMorgan has bought a stake in a UK-based fintech firm that aims to help financial institutions gain an edge through the benefit of shortened exposure time and a reduction in operational and technology costs.
The US bank said on Tuesday it had taken an undisclosed minority holding in AccessFintech, which offers a suite of products that caters to financial institutions’ need for a new regulatory-driven technology across several markets.
AccessFintech was co-founded in June 2017 by former Traiana CEO Roy Saadon and the industry entrepreneur Steve Fazio. JPMorgan has invested in the company through its Series A funding round.
The private investment aims to accelerate AccessFintech’s product development whilst allows to JPMorgan benefit from the growing number of institutions that harness its risk and exception management services.
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The alliance with AccessFintech will also help JPMorgan expand its In-Residence program, which allows startups test their innovations at scale across the banking giant’s network.
The initiative offers a real-time operational dashboard to spot exceptions aligned with an aggregated vendor monitoring platform and sandbox for testing new technologies.
Lawrence Waller, Global Head of Markets & Investor Services Operations at J.P. Morgan, commented: “We have been tracking AccessFintech’s product evolution for some time and we think its ability to bring together different parts of the post-trade process into one aggregated view is technology that is long overdue in the industry. To progress further, they need the opportunity to work at scale and so they make a very natural fit for our In-Residence program, which encourages success through collaboration and the sponsorship of our senior management.”
Roy Saadon, Founder, and CEO of AccessFintech added: “We are thrilled that J.P. Morgan has added us to their investment portfolio. A strategic source of funding can provide a fintech company with credibility and market momentum well beyond the pure financial support. J.P. Morgan has been at the genesis of many successful industry platforms and initiatives, and the In-Residence program is an innovative vehicle for its engagement with fintechs. We look forward to working with the In-Residence team.”