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.
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.”