JP Morgan Chase 2015 Annual Report Download - page 63

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While making these business adjust-
ments, we never lost our client focus.
Once again, J.P. Morgan ranked #1
in Global Investment Banking fees,
according to Dealogic, with a 7.9%
market share. In addition, the CIB
ranked in top-tier positions in 16 out
of 17 product areas, according to
Coalition, another industry analytics
firm. For example, Equity Capital
Markets ranked #1, up from #2 in
2014. In Fixed Income Markets,
Securitization and Foreign Exchange
also moved up, garnering top-tier
positions last year. In Equity Markets,
we are making progress in Cash
Equities, having gained 90 basis
points in market share compared
with 2014. Our consistently high
rankings and progress are a result
of the trust our clients place in us
year after year.
During 2015, we helped clients raise
$1.4 trillion of capital. Of that amount,
$55 billion was for nonprofits and
government entities, such as state and
local agencies and institutions.
Technology and innovation are
embedded in all of our businesses
The CIB accounts for a significant
portion of the firm’s more than
$9 billion technology budget.
Our clients count on us to deliver
immediate access to strategic advice,
markets and solutions using the
most ecient means possible. To
meet their expectations, we are
embracing structural market changes
and developing state-of-the-art elec-
tronic trading capabilities across a
broad range of products.
Our technology commitment is
unwavering and is aimed at decreas-
ing costs, which makes our opera-
tions more ecient and improves
our clients’ experience. Technology
is enabling us to shorten client
onboarding times, speed transaction
execution and reduce trading errors.
Clients are using J.P. Morgan Markets
to access research, analytics and
reports on their mobile devices.
In addition, we are embedding tech-
nologists within our product groups
and strengthening our partnerships
with in-house teams to explore ways
to broaden our use of newer technol-
ogies, such as distributed ledgers,
machine learning, big data and cloud
infrastructure. We are also building
Financial Technology Innovation
Centers, as well as launching a resi-
dency program and inviting startup
firms to work with us on break-
through, scalable technologies.
Technology already is benefiting our
businesses: In Rates, electronic client
revenue was up 47% year-over-year;
in Equities, the gain was 27%. And
the cost per trade has shrunk
between 30% and 50% since 2011,
depending upon the asset class.
We launched a technology platform
for chief financial ocers and corpo-
rate treasurers, J.P. Morgan Corporate
Finance Dashboard, to provide mobile
access to customizable market infor-
mation and live desk commentary
through J.P. Morgan Markets. In
addition, we have introduced a
version of J.P. Morgan QuickPay to
speed electronic payment capabili-
ties for corporate clients.
Treasury Services: An integral
contributor to the CIB’s growth
Global multinational companies
require an international bank, partic-
ularly as the growth in cross-border
trade requires a sophisticated roster
of services. J.P. Morgan’s Treasury
Services business ranks #2 globally
and supports about 80% of the
global Fortune 500, including the
world’s top 25 banks.
In all, Treasury Services has about
14,000 wholesale clients, including
Commercial Banking’s roster, and
handles $5 trillion in payments per
day. Treasury Services also ranks #1
in global U.S. dollar wire transfers.
The business landscape, fragmented
by multiple players, creates an
opportunity for the consolidation
of market share as clients look for
global solutions.
According to consulting firms and
our internal analysis, the Treasury
Services revenue pool is expected to
grow from $144 billion as of 2014 to
around $280 billion by about 2024.
The cross-border business has grown
13% in the past three years and,
while we have a strong existing
franchise, significant opportunities
still remain. As global commerce
becomes increasingly intercon-
nected, multinational clients will
extend their operations across more
borders. Our ability to scale our
services to their needs for ecient
payment systems, additional hedging
solutions and foreign exchange
products will help drive solid growth
in our Treasury Services business.
A noteworthy success last year
was our rigorous eort to reduce
non-operating deposits by $75
billion out of the CIB’s overall
$130 billion reduction.