JPMorgan-led Interbank Information Network (IIN) will this week announce Deutsche Bank as a new partner in its biggest blockchain project as part of its network of 320 banks, all of which have agreed to exchange information on global payments over the blockchain network.
Lower Costs and Better Services
For Germany’s largest bank, the move is aimed at lowering costs, optimizing its system, and speeding up cross-border payments.
About 1.5% of international payments are hindered by delays and inefficiencies, so ensuring that every bank has shared access to a wider pool of details about transfers across the bank members involved in INN can go a long way in improving cross-border payment services for users.
Deutsche Bank is “the world’s biggest clearer of euro-dominated payments”. Its dollar counterpart, JPMorgan, is also heavily relied upon by other banks to settle transactions involving the US dollar.
Takis Georgakopoulos, Head of Payments at JPMorgan, said the collaboration between Deutsche Bank and JPMorgan will be hugely beneficial for both parties due to the resources each bank can offer the other.
Meanwhile, Ole Matthiessen, Head of the Cash Management Division at Deutsche Bank, said the INN would allow Deutsche Bank to offer better services to its clients and would lower the cost of processing difficult payments.
New Members Expected by the End of the Year
The IIN will be operated on the platform called Quorum, which is developed on the blockchain of Ethereum. It has been designed to enable faster cross-border transactions. Several companies have delv Mastercard and R3’s blockchain.
Georgakopoulos said JPMorgan expected to have more bank members by the end of this year. JPMorgan expects to announce more giant bank members as well. He suggested that the IIN is likely to be world’s first platform where banks share payment information with each other.