JP Morgan Payments has launched a cross-border liquidity solution in Saudi Arabia, allowing clients to connect to liquidity pools in London and other international cities.
The service will provide users with a pipeline to link their balances to liquidity structures worldwide. The main features of the product include optimising liquidity in Saudi Arabia, automating cash consolidation from multiple accounts into a single account, and maximising connections to offshore structures.
By optimising liquidity transfer payments, the solution aims to “enable companies to reduce idle balances and use internal cash more efficiently, improving deficit balances and eliminating overdraft fees,” explains JP Morgan Payments global head of liquidity and account solutions, Lori Schwartz.
JP Morgan’s senior country officer for Saudi Arabia, Bader Alamoudi, explains that given the fast-paced financial and technological development taking place in Saudi Arabia, the product aims to match the ambitions of the nation as set in the Kingdom’s Financial Services Development Program by diversifying the region’s economy and strengthening its connections to offshore firms.
“Our solution helps treasurers achieve digital transformation and provides them with a comprehensive, inter-connected and efficient cash management structure,” Alamoudi continues.
He believes that the solution will benefit Saudi Arabia in the long-term by alleviating pressure built up during the pandemic in reducing risk and uncertainty through automisation processes.
The Liquidity Cross Border Sweep follows the domestic sweeping capability product that JP Morgan rolled out in the region in Q4 2021.
Elaborating on the expansion of JP Morgan’s services in the region, Schwartz states: “Our domestic capabilities were the first phase of our liquidity sweeping offering in the region, allowing clients to concentrate funds locally and within Saudi Arabia. The enablement of cross-border sweeping, now further allows clients to connect their structures and liquidity outside of Saudi Arabia, allowing clients to extract the benefits of visibility, optimisation and control of their liquidity globally.”
On the future of JP Morgan Payments in the region, Alamoudi concludes that the digitisation processes and real-time payments capability that the solution brings to both domestic and international transactions will revolutionise the open banking landscape of the region.
He adds: “We are also seeing the need for comprehensive cash management solutions that support the integration of back office systems and innovative products that cover a regional network with global connectivity.”
Commenting on JP Morgan’s growth in the region, Shahrokh Moinian, EMEA head of payments, states: “EMEA forms a crucial part of the firm’s Payments growth agenda. It’s an exciting place to be right now with a huge growth opportunity. We are investing and continue to commercialize our disruptive technology investments, which have been a game changer in a number of areas. Underpinning all of this are our efforts in modernizing our platforms and investing in attracting and developing talent in the regions.”
JP Morgan Payments is currently developing its business in the shifting EMEA landscape, having recently tapped new heads of client service and implementations and sales leadership in the region with banking veterans Brook Johnson and Malika Beri respectively.