Podcast: JPM connects to French funds community Cartes Bancaires

Whitney McDonald 10:09:05
Music, hey and welcome to The Buzz a financial institution automation information podcast. This episode of The thrill is dropped at 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 by expertise and automation learn 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 identify is Whitney McDonald and I’m the editor of financial institution automation Information. As we speak is August 20, 2024 becoming a member of me from JP Morgan is Mike lozenov. He’s right here to debate his world 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, these days, I began my profession out of faculty with JP Morgan, I assume 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 staff about eight years in the past, and now have run a variety of the engineering platforms for our card issuing and service provider buying so I obtained, like, a deep engineering background, however over the past 5 years, obtained the possibility to run product and engineering for our enterprise enterprise, after which not too long ago, simply was elevated to be the worldwide head of service provider companies for JP Morgan. In order that remit consists of main the technique and execution and full PNL accountability of our enterprise right here that gives service provider buying options to a number of the largest world shoppers, after which additionally small companies by our Chase department community.

Whitney McDonald 10:11:09
Nice. Effectively, thanks once more for being right here along with your background in engineering after which, after all, management as nicely. You could have an ideal sort of mixture of background right here that I’m certain helps you with innovation. So earlier than we get into new expertise and what you’re centered on proper now. Possibly you could possibly inform me a little bit bit about who you’re main, what your staff is made up of, and sort of give us a little bit glimpse into what your staff appears like.

Mike Lozanoff 10:11:32
Positive, certain. So, you understand, now we have being a worldwide service provider purchase now we have a staff that focuses on worldwide markets, and I’ve a staff there centered on on our gear up and Asia. We’ve got groups within the US which can be centered on our small enterprise distribution and the options there, in addition to our enterprise section, which might be fairly advanced in enterprise funds, whether or not you’re promoting on to the most important retailers on the planet or distributing to companions and cost service suppliers that you understand, provide their companies as an middleman. You understand you must handle these relationships, and lots of of them have relationships with the financial institution. So fairly need to navigate that. Fairly advanced infrequently, groups centered on business gross sales. So how will we get the product and the way we need to promote it? How will we need to value it? We speak to shoppers about it, a staff very a lot centered on that. After which a staff that will get a variety of work nowadays is concentrated on our cost networks and authorities relations. Quite a bit can lots can occur on this trade and regulation differs by by nation and area. And so have to have a staff there that additionally focuses on that. After which clearly, you understand, my my consolation in engineering, I’ve that staff as all as nicely centered. However of late, that’s sort 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 certain that there’s by no means a boring second from the innovation to maintaining with shopper wants, after which the regulation piece of the puzzle, I’m certain, 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, possibly you could possibly 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 shopper wants? And the way do you sort of innovate round that. What’s the main focus?

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 lots of of our shoppers, you understand, nonetheless use the model cost tech. That’s what our contracts nonetheless state. And, you understand, being a long run processor, you must reinvent your self infrequently, and we’ve been doing that now over the previous few years, placing some huge cash into the platform and re skinning our providing as a commerce resolution. And now we have that on the market the place we’re actually going deep into our API and digital channels. Shoppers want various things in right this moment’s day and age, and how briskly they should rise up and working their. Pace of entry to information and giving it to them in a type issue that’s extra fashionable 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, despite the fact that 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, choose up in retailer, and the options are fairly sophisticated, and retailers like our model, in order that they need to do enterprise with us.

Whitney McDonald 10:14:47
Possibly 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 cost processor? What’s the profit there? I do know that you simply sort of simply talked about you may have the shopper interplay piece. Shoppers are accustomed to the JP Morgan model, however possibly speak by the variations there and the advantages and why that will be the trail that service provider takes. Effectively,

Mike Lozanoff 10:15:09
I feel it’s whether or not it’s a profit or the way you need to body it. The factor I feel is exclusive with us is, you understand, it’s our model, our techniques, our engineers, our service all operating it. We don’t outsource any of that relationship to a 3rd celebration. We don’t white label another person’s expertise. It’s all us. And I feel a little bit bit that the gross sales staff differentiation there may be, proper when you may have an issue, we stand behind it, and our corporations been round for a very long time, and can, will climate any storm. So I feel one which’s a superb level of simply belief, proper there a trusted identify, a trusted model, and we’re going to place, you understand, the agency’s status behind something we put in market. At instances, it will also be a tricky 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 subject, they prefer to leverage their agency, vast relationship in opposition to us, in order that there’s at all times a superb aspect and a foul aspect to to what you may have 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 a variety of protection, and we see on a regular basis, there’s totally different partnerships. There’s totally different somebody owns this a part of the journey. Somebody owns this, who owns this half? And if there’s points with the cost, it may sort 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 understand, you’re, you’re answerable for the entire journey. When issues are going nice, or if there’s a hiccup, you’ll be able to,
Mike Lozanoff 10:16:41
yeah, completely. And it’s. It’s a fancy factor. I feel the the merchandise I’ve, I’ve realized extra as I converse with retailers or massive shoppers, is, you understand, they aren’t, they aren’t funds consultants or transaction consultants, proper? They only need to run their enterprise. So the extra we are able to carry options to them which can be, are extra complete, is one thing that they’re they’re listening to. And once more, if in case you have one particular person or one staff to name, and the factor I’ve seen is, what’s saved 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 feel, that’s, you understand, additionally resonates with shoppers which have an extended standing relationships. They know we’ll be there.

Whitney McDonald 10:17:21
Now, talking of getting the the flexibility to drawback remedy. You’ve been at JP Morgan a very long time. You’ve seen the totally different, I don’t know, the totally different improvements come out. You’ve seen how the journey has advanced at JP Morgan, simply from being on the totally different groups that you’ve got been on. However possibly you’ll be able to speak us by 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 sort of meet a few of that shopper want Positive.

Mike Lozanoff 10:17:49
Let’s see the place to begin. I feel a number of the issues which can be most attention-grabbing recently, we spent a variety of time simply maintaining with the regulation and ongoing cost reg. However that’s not the good stuff. I feel the newer issues now are one. I’m enthusiastic about how we’ve been digitizing our enterprise after which taking a variety of insights and information belongings that now we have the place we are able to see one of many different benefits of being a significant financial institution processor. We’ve got an enormous client set of knowledge. How are all of the chase prospects which have bank cards or debit playing cards, spending their cash, even when they don’t course of with us, now we have entry to have a look at these sorts of issues and assist shoppers see how they might be evaluating their spend in opposition to different demographic prospects in that very same section. Or the instance I like to make use of is possibly serving to small companies, the place we are able to current them as a comparability software that, and I feel we name shopper Insights, the place we are saying, let’s say you’re a barber store and also you need to open a second location. Effectively, the place are others spending cash in several geographic areas round you? And might even aid you perceive the place it’s possible you’ll need to open your subsequent door. These are various things. Issues that we’re utilizing to ready to make use of information to assist in giving shoppers the flexibility to develop their enterprise. The opposite one, I see that we’re having to essentially problem ourselves about not simply being a part of the transaction circulate, however of the shopper’s journey. So the extra we’re getting capable of 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 resolution, or giving them one thing to assist them with their Let’s see your subscription shopper. We’re placing logic in to say we can assist handle your subscription billers, that you simply be your shoppers, that you simply invoice or your prospects, 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} shopper 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, after all, is the concept behind the information. And naturally, you guys have a ton of knowledge that you simply’re accumulating. You simply talked by that, however with the ability to faucet the information and people insights, such as you stated, the geography or evaluating spending on the buyer aspect or small enterprise aspect, that’s one thing that’s key proper now. Are you seeing elevated demand for that from the shopper base proper now? Are they utilizing these options? Are they tapping one thing like client insights.

Mike Lozanoff 10:20:24
They’re, they’re, you understand, they get, you understand, what you at all times discover once 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 by curiosity to start with, after which you must watch it proper. What, you understand, what I what I feel could also be subsequent is, hey, that perception is neat, however now I’ve to show that perception into an motion. Possibly I can inject a loyalty program or a advertising and marketing marketing campaign. I feel persevering with to tug 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 feel that’s the proper segue to the subsequent query, which is, what are you centered on proper now? I do know that you simply talked about that is, it is a world enterprise. You could have your groups in Europe, you may have the groups in us. You could have a worldwide enterprise. You’re maintaining with totally different regulation. You’re maintaining with totally 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. Possibly I’ll bounce 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 referred to 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 of provide that, that card sort in straight in France. And I feel it’s, you understand, it’s, consider it as a neighborhood debit community of types, like now we have within the US. They’ve that in French, and has massive spend on it, because it’s very favorable to retailers, as the price of that cost is kind of low. We’re doing that with a number of the latest expertise that we’ve constructed. We acquired an organization a couple of years in the past that was a cloud switching expertise that we’ve now integrated into our full platform. The corporate was referred to as renovate, and we’re doing it with that staff so it’s a full cloud resolution. It’s weaved into our goal commerce platform, and we hope to be promoting that in 2025 that’s obtained a fairly a bit of labor. We’re additionally taking a number of the greatest belongings we’ve obtained from actually making an attempt to sew in a robust digital onboarding for small companies. We did a variety of that, and have had that in other places 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 belongings and ensuring, whether or not you’re small, medium or massive, now we have a method in to get to our companies, the one one which I feel is sort of a necessity. I discussed this in retailer piece. So you understand, simply coming from, you understand, a tech background, what I didn’t at all times notice, and it’s now ruined looking for me, being a part of a service provider buying enterprise, as a result of I am going in and I have a look at the terminal and I ponder who the processor is, however that the complexity of what retailers need to take care of, with that bodily in retailer machine, their ERP techniques and stock. So the funding we’re sort 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 functions on these terminals that may work natively with our on-line on-line interface will assist to take a variety of that friction away from shoppers. So, you understand, that’s one I’m extraordinarily enthusiastic about we’re in all probability a yr into software program improvement and a number of the product improvement we’ve been speaking about at varied totally different conferences, however I see it actually going reside in 2025 and that’s going to be a brand new channel for us, as a result of we’ve at all times distributed service provider buying by a variety 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 one more piece of that, that complete, the entire worth

Mike Lozanoff 10:24:14
chain and that and that headache for shoppers, how can we proceed to take that and see how we are able to carry that an increasing number of in home?

Whitney McDonald 10:24:21
Yeah. I imply, that positively is sensible. So that you stated hopes for that to go reside 2025
Mike Lozanoff 10:24:27
That’s proper, we’re actively speaking to shoppers 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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