Jpmorgan Chase To Pilot Payments Platform
For Landlords And Tenants
JPMorgan Chase believes that landlords and tenants are finally ready to abandon paper checks in favour of digital payments.
Sam Yen, chief innovation officer of JPMorgan's commercial banking division, says the firm is launching a platform for property owners and managers that automates online rent payments.
Digital payments have steadily taken over more of the world's transactions in recent years, but the monthly rent check is still paper.
This is due to the market's fragmentation, with the majority of the country's 12 million property owners managing portfolios of fewer than 100 units.
78% are still paid through checks and money orders, according to JPMorgan. 100 million Americans spend $500 billion in rent, the bank claimed.
JPMorgan has spent the last few years developing Story software, which is intended to eventually become an all-in-one property management system.
who leads JPMorgan's Northeast commercial term lending, said rent collection is the "most time-intensive procedure" for real estate owner-operators.
Yen said JPMorgan intends to gain traction by offering customers data and analytics on how to determine rent levels, where to invest, and how to screen tenants.
The bank says it's the leading lender to multifamily property owners with $95.2 billion in loans at midyear, but it's looking beyond its 33,000 clients in the industry.
Under CEO Jamie Dimon, the bank has pledged to investing $12 billion a year on technology, a stunning number that has financial experts calling for additional clarification this year.
JPMorgan expects to capture "a big share" of the $500 billion in yearly rent payments using its software, CEO Doug Petno told analysts in May.