Key takeaways
- Industry leaders are facing challenges regarding when they can process and send payments, as traditional, American business hours are no longer the standard for clients all over the world
- Wire 365 by J.P. Morgan Payments is an enhancement to help clients adapt, with expanded business hours that allow payments between J.P. Morgan clients to be made every single day of the year, including weekends and U.S. holidays
- Leveraging Wire 365 will ensure FIs and NBFIs meet customer expectations and keep up to speed with the competition
Financial institutions (FIs) and non-bank financial institutions (NBFIs) face critical challenges in meeting the demand for extended payment processing and sending times. Often infrastructure must be updated to help ensure that servers, databases and networks are operational and can handle longer peak loads without downtime. Security and operational costs also rise as service time increases. This includes higher spending on real-time monitoring, encryption and multi-factor authentication to combat fraud and hacking, as well as longer staffing hours for employees to monitor data centers and provide customer support.
These changes and the associated increased investment are being driven by clients who increasingly expect their payments to be processed in near real time, 365 days a year, regardless of when they are made or where they are located. For example, companies in Asia do not want to wait until Monday morning New York time to receive a payment confirmation on a delivery that was made Saturday evening.
Make every day count with Wire 365
Financial institutions need access to a global clearing solution that can help move money quickly and securely. Wire 365 from J.P. Morgan Payments allows payments to be made every single day of the year.
Enter Wire 365: Fueling the future of global clearing
As the industry grapples with this new reality, Wire 365 by J.P. Morgan Payments is helping clients adapt. In order to meet these emerging developments and expectations, and stay ahead of the industry shift in thinking, our business hours have been expanded and U.S. dollar (USD) book transfer payments between J.P. Morgan clients will now be made every single day of the year, including weekends and U.S. holidays.
As customer expectations and technology continue to evolve, and as clearing houses explore expanded hours, Wire 365 brings significant benefits to businesses, the public sector, FIs, and NBFIs that need to make time-sensitive cross-border and high-priority payments. It also benefits consumers looking to send or receive cross-border payments in an increasingly digital, always-on economy.
Here’s what Wire 365 can do for you and your clients
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Increase speed and transparency
In alignment with the Financial Stability Board's G20 principles, J.P. Morgan is committed to enhancing the efficiency, speed, accessibility and transparency of cross-border payments. With Wire 365, your clients can feel the impact of that commitment, as their payments experience can be significantly improved. Some of the advantages they can gain from extended operating hours and weekend availability are:
- Faster book transfer settlements every day of the year, leveraging J.P. Morgan’s industry-leading network of 4,000+ correspondent banks
- More accurate and timely allocation of funds and more efficient liquidity management
- A more powerful client experience, enabling payments processing any day of the year
Extended operating hours operating hours provide you with more options to meet client demand and help spur payments innovation.
Considering the time zone differences, this change will be especially valuable for clients in the APAC and EMEA regions, who will now have an extended window to complete USD clearing transactions and process funds.
"In today's interconnected world, extended hours for cross-border payments are essential, regardless of time zones or business hours,” said Renata Vilanova Lobo, Managing Director of Cross-Border Payments, J.P. Morgan Payments. “What was once a ‘nice to have’ is now crucial for businesses to remain competitive, maintain efficient cash flow, and achieve faster settlements. Wire 365 is our response to this evolving demand.”
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Power strategic thinking and competitiveness
As the world moves toward near real-time payments, and an improved settlement experience via ISO 20022 messaging, the ability to minimize downtimes is critical. Weekend and holiday processing have become equally important to weekday processing. The increased push towards digitization is aligned with customer expectations and leveraging Wire 365 can help you meet those demands, and keep up to speed with the competition.
For institutions already partnered with J.P Morgan for USD clearing, the transition to Wire 365 will be virtually seamless, with no additional technical implementation required.
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Accommodate international business
With Wire 365, J.P. Morgan Payments can now process eligible book transfer transactions, seven days a week, 52 weeks a year—including weekends and U.S. holidays. This means greater productivity for clients in specific geographies, including the Middle East and Asian corridors, where weekends and holidays do not align with the U.S.
Latin America and West Coast U.S. clients who normally have their days cut short by traditional banking hours will also benefit from the advantages that Wire 365 delivers.
Jakarta, Indonesia
Take, for example . . .
A manufacturing company in Indonesia is a customer of Bank A, and urgently needs to secure a lease for a new office in downtown Jakarta. Lease security is based on a first-come, first-serve basis, and the company makes an offer first-thing Monday morning. Their competitors submit an offer three hours later. The problem is that Bank A is based in the U.S., where it is Sunday evening, and their competitors use Bank B, which is local. Bank A’s payment arrives hours late, causing the company to miss out on the real estate they need.
If both the manufacturing company and the owners of the office space bank within the J.P. Morgan network of 4,000 global FIs, the transaction could be routed via Wire 365.1 This would have allowed the manufacturing company to settle the payment during local operating hours in Indonesia, enabling them to remain first in line to secure the lease.
From last-minute transactions to time-sensitive payments, businesses all over the world will be able to do more via Wire 365’s capabilities, by delivering expanded access to domestic and cross-border payment settlement.
See how J.P. Morgan can empower cross-border payments with our Global Clearing solutions.
References
1.
JPMC Proprietary Data 2024
