JPMorgan strengthens its digital strategy by investing in AI FinTech 💸; When 1+1=3: Robinhood buys credit card startup X1 💳; Bank of Lithuania revokes license of former Railsr unit 😬

FinTech is Eating the World, 22 June

Hey Everyone,

Happy Thursday! Today’s issue is especially interesting as we’re looking at JPMorgan strengthing its digital strategy by investing in AI FinTech (there’s a huge opportunity in trade finance + how JPM is delivering), Robinhood which bought credit card startup X1 (why it’s about 1+1=3, and them taking on Apple), and Bank of Lithuania that just revoked the license of former Railsr unit (this is very bad!). Let’s jump straight into the spicy stuff 🌶

JPMorgan strengthens its digital strategy by investing in AI FinTech 💸

The deal 🤝 US banking giant JPMorgan JPM 0.00%↑ has invested in the artificial intelligence and machine learning platform Cleareye.ai to further develop its trade finance solutions.

The USP 🥊 Cleareye.ai provides its customers and clients with the digital trade finance solution ClearTrade, designed to offer digital automation of trade compliance and operations.

The platform also gives users a smart interpretation of data and documents in trade to identify TBML and Sanctions risks, automating expert manual checking processes. The service is powered by a document digitalization engine that can extract, validate, as well as to accurately classify unstructured data. 

In short, Cleareye.ai aims to automate as much of the trade finance process as possible including document analysis and compliance.

More on this 👉 We must note that JPM is already a Cleareye customer, and for the last year it has been using the FinTech’s ClearTrade platform to map data from the nearly 4 million documents it receives annually directly onto the back back-office systems. No financial details of the investment were disclosed.

✈️ THE TAKEAWAY

Why this matters? 🤔 Trade finance is a $45 billion market globally that’s still a very manually intensive industry loaded with paper and lacking standardization. Cleareye.ai aims to change that and now having the backing of JPMorgan, it can make a real difference. Zooming out, this is yet another proof that JPM is playing a very long game - by leveraging the latest technology and focusing on digital, it might become the first $1 trillion bank. Dimon keeps delivering 👏

ICYMI: JPMorgan is developing a ChatGPT-like AI service for investors 😳 [+ lots of bonus reads]

JPMorgan is building the largest payments ecosystem in the world 😳