JP Morgan plans to increase spending for technology within its Custody and Fund Services (CFS) business by 30%, according to corporate and investment banking chief Daniel Pinto.
In the bank’s 2016 annual report to shareholders, Pinto outlined how it plans to increase its technology budget by 30% in comparison to 2014, while driving down operating expenses by 12%.
Pinto, who oversees JP Morgan’s custody business as well as its global markets unit, plans to enhance its technology capabilities following its landmark $1.3 trillion custody deal with BlackRock.
“Our commitment to technology and delivery of innovative solutions were also important factors behind BlackRock’s decision to award us a CFS mandate,” said Pinto.
“Using technology-driven solutions, CFS is enhancing its stability and enabling the business to grow in a more scalable way.”
As of the end of 2016, JP Morgan saw increased business with existing custody clients by 10%, serving around 2,500 clients with $20 trillion in assets under custody.
JP Morgan has also spent considerable amounts in technology products for its Global Markets and Treasury Services businesses, with the latter set to increase its technology budget by 12% for 2017.
Recently, Pinto said the bank saw a $100 million currency trade executed with a mobile phone.
“The electronic evolution is advancing, and the investments we’ve made, and will continue to make, already are proving their merit to our clients,” he added.