JP Morgan Adds 100 Trade and Supply Chain Professionals
JP Morgan Treasury Services has strengthened the organisational structure of its global trade practice to better address the industry’s increasing demand for trade finance and supply chain management solutions. Under the leadership of global trade executive Daniel Cotti, JP Morgan is hiring several new senior managers and adding nearly 100 trade and supply chain professionals to the firm’s international team.
The new structure introduces ‘centres of excellence’ for all trade products in every region of the world; regional trade advisory teams; and solution delivery teams enabling trade sales specialists to devote more time to clients and internal sales partners.
“JP Morgan is positioning itself for unprecedented growth in its global trade business and is committed to being one of the world’s leading trade banks,” said Cotti. “By adding key personnel and redesigning our business to more quickly meet clients’ needs, we aim to increase our traditional trade market share and expand our supply chain management and structured trade finance businesses. This enhanced product strategy will leverage our US commercial bank franchise, participate in the firm’s global corporate bank expansion, and build stronger trade partnerships with financial institutions around the world.”
Among the new senior management positions reporting to Cotti are:
JP Morgan’s new global trade management team also is comprised of Jeremy Shaw, regional executive for Europe, Middle East and Africa (EMEA); Mike McKenzie, regional treasury and securities services executive for Latin America; and Michael Quinn, global head of traditional trade. Cort Jacobsen has joined as global product delivery head, and additional key hires have been made to strengthen the global trade teams in Africa, Asia, Europe and the Middle East.
Commenting on JP Morgan’s expansion, Aite Group senior analyst Nancy Atkinson said: “Nearly half of the top global trade banks have trade finance staff of 100 to 500 full-time equivalents [FTEs]. The addition of 100 FTEs is, therefore, significant. JP Morgan is a leading global trade bank that has been at the forefront of integrating trade finance and trade services with transactional services to support corporates’ financial supply chain. This latest announcement indicates that they continue to move forward on the strategy to integrate all relevant financial supply chain services, while supporting the various needs of disparate markets. For example, Asia-Pacific is one region where letters of credit are still demanded frequently. North America and western Europe are areas where banks need to evolve to support open-account transactions and alternative supply chain financing. No one competitor stands out as having ‘won’ the global financial supply chain market. The trade finance market is consolidating and JP Morgan will continue to be a big and important player. This announcement affirms that stance, and indicates how they are structuring for the future.”
She added: “JP Morgan acquired Vastera, a logistics company, and Xign, an electronic invoice presentment and payment vendor, and they re-aligned their internal organisation to position trade finance more closely with treasury services. Given the rapidity of technology evolution, I do not recommend that JP Morgan builds their new system in-house. They should use one or more vendors to assist them. Current IT staff is mostly used to maintain existing systems, so lacks state of the art technology knowledge. Besides, using new technology architecture techniques, systems can be configured to the specifications of each bank, allowing for competitive differences and differentiation on the same platform.”