JPMorgan Chase is planning the consolidation its corporate payment operations by combining small business (SMB) and large enterprise solutions, the Financial Times (FT) reported on Thursday (Jan. 17).
The move will see Chase Merchant Services, the bank’s small business payments unit, merge into the Corporate and Investment Bank’s Treasury Services, said reports, citing an internal JPMorgan memo. The combined entity will be called the Wholesale Payments unit.
“Together, this powerful organization, which already includes our Trade Finance and Commercial Card business, will continue to develop our own worldwide payment capabilities, and partner with digital payment companies looking to expand in the U.S. and internationally,” said Co-President and Chief Operating Officer Daniel Pinto in the memo.
JPMorgan’s Treasury Services Managing Director Takis Georgakopoulos will lead the Wholesale Payments unit, reports said. A spokesperson for the bank told the publication that the unit will create “one wholesale payments business focused on being the best in the world for businesses of all sizes.”
Earlier this week, JPMorgan released its quarterly earnings results, which missed analyst expectations for earnings per share (EPS) — the first miss in nearly four years. Still, the bank noted that consumer lending and credit card performance remained strong, with revenues up on consumer and community banking operations.
The FT noted that the financial institution’s (FI’s) corporate treasury services showed a promising performance in the quarterly report, posting a 13 percent year-over-year revenue increase within its Treasury Services unit.
Last month, the company’s CEO of Commercial Banking Doug Petno said JPMorgan had handpicked about 1,500 companies in Europe that it wants to become clients in its effort to expand across the continent. At the time, reports said mid-market and family owned businesses across Europe were being targeted by the bank, particularly in France, Germany, Italy, the Netherlands, Spain and Britain.
JPMorgan also noted preparing its bankers and U.K. commercial clients for Brexit.