J.P. Morgan is becoming a member of French funds community Cartes Bancaires, Mike Lozanoff, managing director and international head of service provider companies at J.P. Morgan, tells Financial institution Automation Information on this episode of “The Buzz” podcast.
The financial institution is tapping cloud-based Renovite to construct the connection to the community, Lozanoff says. The financial institution acquired Renovite in 2022 and is utilizing the cloud-based answer and its crew to construct the tech, he says.
“We’ll be the primary American financial institution really a part of the French banking system, the place we’ll be registered and in a position to provide that card kind immediately in France,” he says.
Cartes Bancaires is “favorable to retailers” as a community as the price of fee is low, Lozanoff says. The financial institution plans to have the cardboard providing obtainable by 2025.
Pay attention as Lozanoff discusses updates to JPM’s service provider buying enterprise, together with worldwide efforts, e-commerce innovation and in-store choices.
Early-bird registration is now obtainable for the inaugural Financial institution Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Uncover the newest developments in AI and automation in banking. Register right here and apply to talk right here.
The next is a transcript generated by AI expertise that has been calmly edited however nonetheless comprises errors.
Whitney McDonald 10:09:05
Music, hey and welcome to The Buzz a financial institution automation information podcast. This episode of The excitement is delivered to 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 via expertise and automation discover ways to overcome implementation challenges by listening to first hand from C stage 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 title is Whitney McDonald and I’m the editor of financial institution automation Information. Right now is August 20, 2024 becoming a member of me from JP Morgan is Mike lozenov. He’s right here to debate his international 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 right this moment. I’ve a little bit little bit of distinctive story. In all probability, at the moment, I began my profession out of school with JP Morgan, I suppose 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 understand, 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 crew 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 received, like, a deep engineering background, however over the past 5 years, received the possibility 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 a few of the largest international purchasers, after which additionally small companies via our Chase department community.
Whitney McDonald 10:11:09
Nice. Properly, thanks once more for being right here along with your background in engineering after which, in fact, management as nicely. You will have an amazing form of mixture of background right here that I’m positive helps you with innovation. So earlier than we get into new expertise and what you’re centered on proper now. Perhaps you possibly can inform me a little bit bit about who you’re main, what your crew is made up of, and form of give us a little bit glimpse into what your crew seems like.
Mike Lozanoff 10:11:32
Positive, positive. So, you understand, we have now being a world service provider purchase we have now a crew that focuses on worldwide markets, and I’ve a crew there centered on on our gear up and Asia. We now have groups within the US which are centered on our small enterprise distribution and the options there, in addition to our enterprise section, which may be fairly complicated in enterprise funds, whether or not you’re promoting on to the biggest retailers on the planet or distributing to companions and fee service suppliers that you understand, provide their companies as an middleman. it’s a must to handle these relationships, and plenty of of them have relationships with the financial institution. So fairly should navigate that. Fairly complicated infrequently, 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 value it? We speak to purchasers about it, a crew very a lot centered on that. After which a crew that will get lots of work lately is targeted on our fee networks and authorities relations. So much can quite a bit can occur on this business and regulation differs by by nation and area. And so have to have a crew there that additionally focuses on that. After which clearly, you understand, my my consolation in engineering, I’ve that crew as all as nicely centered. However of late, that’s form of the place I grew up and have a consolation zone. So I’m attending to be taught much more of the enterprise aspect, which really has me actually invigorated.
Whitney McDonald 10:12:57
Yeah, I’m positive that there’s by no means a boring second from the innovation to maintaining with consumer wants, after which the regulation piece of the puzzle, I’m positive, is simply the the cherry on prime, making an attempt to bail it completely. Um, nicely, on the subject of what you’re engaged on, what you’re innovating, perhaps you possibly can give us a little bit 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 form of innovate round that. What’s the main target?
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 plenty of of our purchasers, you understand, nonetheless use the model fee tech. That’s what our contracts nonetheless state. And, you understand, being a long run processor, it’s a must to reinvent your self infrequently, 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 answer. And we have now that on the market the place we’re actually going deep into our API and digital channels. Purchasers want various things in right this moment’s day and age, and how briskly they should rise up and working their. Velocity of entry to knowledge and giving it to them in a type issue that’s extra trendy has been an enormous funding space for us. We’re additionally going into it a little bit bit deeper into in retailer funds. We’ve been a power participant in E commerce and, you understand, in on-line and on-line retailer recurring funds, however getting deeper as a financial institution processor within the in retailer, funds is an enormous funding for us. There’s there’s nonetheless an incredible quantity of spend in retailer, although most of us, you understand, might store on our telephones, however there’s loads of issues that that chat that approach you purchase on-line, decide up in retailer, and the options are fairly difficult, and retailers like our model, in order that they wish to do enterprise with us.
Whitney McDonald 10:14:47
Perhaps 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 form of simply talked about you have got the consumer interplay piece. Purchasers are conversant in the JP Morgan model, however perhaps speak via the variations there and the advantages and why that might be the trail that service provider takes. Properly,
Mike Lozanoff 10:15:09
I believe it’s whether or not it’s a profit or the way you wish to body it. The factor I believe is exclusive with us is, you understand, it’s our model, our programs, our engineers, our service all operating it. We don’t outsource any of that relationship to a 3rd get together. We don’t white label another person’s expertise. It’s all us. And I believe a little bit bit that the gross sales crew differentiation there may be, proper when you have got an issue, we stand behind it, and our corporations been round for a very long time, and can, will climate any storm. So I believe one which’s level of simply belief, proper there a trusted title, a trusted model, and we’re going to place, you understand, the agency’s status behind something we put in market. At occasions, it can be a troublesome factor, as a result of the agency status or model can be utilized in opposition to you. So I want to say funds is a really passionate subject. When corporations have any challenge, they wish to leverage their agency, broad relationship in opposition to us, in order that there’s all the time aspect and a nasty aspect to to what you have got 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 completely different partnerships. There’s completely 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 well form of get a little bit bit messy. So having all of it in home permits for that to all be in a single place. , you’re, you’re liable for the entire journey. When issues are going nice, or if there’s a hiccup, you possibly can,
Mike Lozanoff 10:16:41
yeah, completely. And it’s. It’s a posh factor. I believe the the merchandise I’ve, I’ve discovered extra as I converse with retailers or giant purchasers, is, you understand, they aren’t, they aren’t funds consultants or transaction consultants, proper? They simply wish to run their enterprise. So the extra we will convey options to them which are, are extra complete, is one thing that they’re they’re listening to. And once more, when you’ve got one particular person or one crew to name, and the factor I’ve seen is, what’s stored me at JP Morgan for therefore lengthy, you understand, if there is a matter, we swarm to it and we’ll repair it. And that’s the factor, I believe, that’s, you understand, additionally resonates with purchasers which have an extended standing relationships. They know we’ll be there.
Whitney McDonald 10:17:21
Now, talking of getting the the power to drawback resolve. You’ve been at JP Morgan a very long time. You’ve seen the completely different, I don’t know, the completely different improvements come out. You’ve seen how the journey has developed at JP Morgan, simply from being on the completely different groups that you’ve been on. However perhaps you possibly can speak us via a little bit little bit of some tasks 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 form of meet a few of that consumer want Positive.
Mike Lozanoff 10:17:49
Let’s see the place to begin. I believe a few of the issues which are most attention-grabbing currently, we spent lots of time simply maintaining with the regulation and ongoing fee reg. However that’s not the best stuff. I believe the newer issues now are one. I’m enthusiastic about how we’ve been digitizing our enterprise after which taking lots of insights and knowledge property that we have now the place we will 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 clients which have bank cards or debit playing cards, spending their cash, even when they don’t course of with us, we have now entry to take a look at these sorts of issues and assist purchasers see how they might be evaluating their spend in opposition to different demographic clients in that very same section. Or the instance I like to make use of is perhaps serving to small companies, the place we will current them as a comparability instrument that, and I believe 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. Properly, the place are others spending cash in numerous geographic areas round you? And may even enable you perceive the place you might wish to open your subsequent door. These are various things. Issues that we’re utilizing to in a position to make use of knowledge to assist in giving purchasers the power 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 circulation, 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 components of their enterprise, whether or not that’s payroll and constructing a payroll service that’s built-in for our small enterprise answer, or giving them one thing to assist them with their Let’s see your subscription consumer. We’re placing logic in to say we might help handle your subscription billers, that you simply be your purchasers, that you simply invoice or your clients, and in the event that they get declined, we are going to retry in your behalf and do various things that will help you not lose that buyer. These are issues that was simply, you understand, suppose 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 attention-grabbing, in fact, is the concept behind the information. And naturally, you guys have a ton of knowledge that you simply’re accumulating. You simply talked via that, however with the ability to faucet the information 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 understand, they get, you understand, what you all the time discover if you current a brand new product or a brand new perception is, like, you get a little bit little bit of, you understand, click on via curiosity at first, after which it’s a must to watch it proper. What, you understand, what I what I believe could also be subsequent is, hey, that perception is neat, however now I’ve to show that perception into an motion. Perhaps I can inject a loyalty program or a advertising marketing campaign. I believe persevering with to drag 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 believe that’s the proper segue to the following query, which is, what are you centered on proper now? I do know that you simply talked about that is, it is a international enterprise. You will have your groups in Europe, you have got the groups in us. You will have a world enterprise. You’re maintaining with completely different regulation. You’re maintaining with completely 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 attention-grabbing one. Perhaps I’ll leap internationally for a bit. We, we did announce being a big European processor as nicely, 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, really, a part of the French banking system, the place we’ll be registered and be capable to provide that, that card kind in immediately in France. And I believe it’s, you understand, it’s, consider it as an area debit community of kinds, like we have now 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 kind of low. We’re doing that with a few of 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 integrated into our full platform. The corporate was known as renovate, and we’re doing it with that crew so it’s a full cloud answer. It’s weaved into our goal commerce platform, and we hope to be promoting that in 2025 that’s received a fairly a bit of labor. We’re additionally taking a few of the greatest property we’ve received from actually making an attempt to sew in a powerful digital onboarding for small companies. We did lots of that, and have had that somewhere else 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, we have now a technique in to get to our companies, the one one which I believe is form of a necessity. I discussed this in retailer piece. So you understand, simply coming from, you understand, a tech background, what I didn’t all the time understand, and it’s now ruined looking for me, being a part of a service provider buying enterprise, as a result of I’m going in and I take a look at the terminal and I’m wondering who the processor is, however that the complexity of what retailers should cope with, with that bodily in retailer machine, their ERP programs and stock. So the funding we’re form of making, and you understand, our we’re calling it our omni channel funding, the place we’re going to begin to personal the software program purposes on these terminals that can work natively with our on-line on-line interface will assist to take lots of that friction away from purchasers. So, you understand, that’s one I’m extraordinarily enthusiastic about we’re in all probability a yr into software program growth and a few of the product growth we’ve been speaking about at varied completely different conferences, however I see it actually going stay in 2025 and that’s going to be a brand new channel for us, as a result of we’ve all the time distributed service provider buying via 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 understand, can we play in that market as nicely,
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 purchasers, how can we proceed to take that and see how we will convey that increasingly in home?
Whitney McDonald 10:24:21
Yeah. I imply, that undoubtedly is smart. So that you stated hopes for that to go stay 2025
Mike Lozanoff 10:24:27
That’s proper, we’re actively speaking to purchasers 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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