JP Morgan to connect to BlackRock’s Aladdin

JP Morgan's investment bank chief hopes to work with more of its asset manager clients to modernise its infrastructure.

JP Morgan is set to connect to BlackRock’s Aladdin platform, one of the industry’s most used risk and portfolio management systems, as it looks to roll out its new technology strategy.

By connecting to the platform run by BlackRock, which is also one of JP Morgan’s largest clients, it will be able to link up directly to its other custody clients that are connected to the platform to avoid duplication of services.

“As a part of that we are working with BlackRock and are integrating ourselves to their platform by connecting with Aladdin,” said Daniel Pinto, chief executive of JP Morgan’s Corporate and Investment Bank (CIB), speaking at its investor day on Tuesday.

“We are working together, and hopefully we will be able to do that with more and more asset managers in this process of modernising our infrastructure and really be able to grow.”

Pinto also vowed to develop its middle-office outsourcing services by looking at new ways to increase efficiencies in the outsourcing process and create a global standard for asset managers.

“Middle-office outsourcing is going to be very important. At the moment when I look at middle-office it is being done in a way that it couldn’t be any more inefficient,” said Pinto.

“I think whoever manages to simplify those processes so they are the same for asset managers and then customised around that, [that] will be the way you can provide that service in a more effective way for the clients and the bank.”

The investment bank chief also suggested the bank will use Fintech firms to help improve the investor services unit at the bank as part of its overall technology strategy.

JP Morgan also plans to increase investment into its ETF and alternative investment platform, following a period of rapid growth in the products over the last year.

“ETFs in the next few years will probably grow around 18%, and alternatives [investments] around 9%. So they are fast growing asset classes, and we are investing heavily to improve our offering on that,” he added.