Chief Innovation Officer of JPMorgan (NYSE:JPM) Commercial Banking Division Sam Yen told CNBC on Monday that the bank is testing a payments platform that automates the invoicing and receipt of online rent payments as part of the banking giant’s massive investment in technology to compete with fintech startups. As a result, JPM stock surged slightly.
The bank hopes to shake up the traditional rent payment methods of cheque and money order, which are still utilized by 78% of tenants. The story is a piece of software developed by JPMorgan (JPM) with the final goal of making it into a comprehensive property management system.
Kurt Stuart, head of JPM stock commercial term financing for the Northeast area, told CNBC that rent collecting is the “most time-intensive procedure today for a real estate owner-operator.”
Landlords have traditionally used programs like Microsoft Excel and Intuit QuickBooks to manage their companies, Yen said, in addition to the time-consuming process of collecting and depositing paper checks. Even while newer, more real estate-specific systems like TurboTenant and Buildium have arisen, he claims that none of them have established themselves as market leaders.
Yen added that in addition to streamlining rent collection, the platform would provide landlords access to valuable data and analytics that may inform how they set rates, plan for the future, and even help them screen potential renters.
A resident’s rent payments are automatically processed each month, they get automated reminders, and they have access to their payment history and lease terms via a personalized web portal.
On the Q4 2021 earnings call for JPM stock, CEO Jamie Dimon discussed the rise of fintechs: “There’s a lot of tough opposition here, but we plan to overcome it. Additionally, there are occasions when monetary outlay is inevitable.”
The bank announced to Reuters in September that it will hire two thousand engineers worldwide by the end of 2022.
JPM stock rose somewhat after the company launched a rent-payment network for property managers.
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