J. P. M o rgan ACCESS: Delivering o n t he P r o m i s e

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1 Global Headquarters: 5 Speen Street Framingham, MA USA P F J. P. M o rgan ACCESS: Delivering o n t he P r o m i s e W H I T E P A P E R Sponsored by: J.P. Morgan Jeanne Capachin December 2012 J.P. Morgan is in the midst of a multiyear project to completely redesign its J.P. Morgan ACCESS SM commercial banking portal. The goal of this strategic initiative is to create a much improved user experience. The investment was initiated in response to a few important industry trends. First, technology has advanced dramatically since the original ACCESS platform was developed. Advances such as service-oriented architecture, Web 2.0, and smart mobile devices allow J.P. Morgan to provide more capabilities to its clients through the portal. Second, treasurers' roles have changed dramatically in the past decade, and the way treasurers want to use their financial management tools and empower their staff has evolved as well. J.P. Morgan has already begun rolling out the platform for both desktop and mobile use to its clients. This is a process that will continue for the next 24 months as J.P. Morgan completes the development of new features and reaches parity with the capabilities of its existing platforms. This paper provides a look into the features clients can expect as they transition to the new platform. T h e N e x t - G e n e r a t i o n C o r p o r a t e T r e a s u r e r Over the past decade, the role of the corporate treasurer has increased in importance. Leading up to 2008, treasurers earned accolades by obtaining superior investment returns or toeing the line on expenses. They and their staff were tasked with: Ensuring that their organizations maximized cash on hand Maintaining sufficient liquidity to meet current and future obligations Balancing investment risks and rewards prudently There were some basic assumptions that access to credit would remain, bank safety and soundness was assured, and counterparty and currency risks were well understood. Since 2008, those assumptions can no longer be made, and treasurers find themselves facing ongoing financial crises. To manage a more tumultuous environment, they must have better information and tools in place. Now, treasurers' real value to their organizations is abundantly clear, and their responsibility to December 2012, IDC Financial Insights #FIN231464R1

2 ensure liquidity and manage risks is a top priority as well for executives and board members. Although the CFO is still the chief accountant, the treasurer could be deemed chief of cash. In this more high-profile role, treasurers require more tools from their banks that can both support them in this expanded role and enable their staff to efficiently pursue their day-to-day activities. Tools that were designed and developed for the last generation of treasury staff are showing their age they are harder to use, less flexible, and less customized to end-user preferences. I n v e s t i n g i n C o m m e r c i a l P o r t a l s In response to changing requirements and technology developments, tier one banks such as J.P. Morgan are investing in their commercial banking portals. This is a once-in-a-decade opportunity, and there is a lot to consider. As banks such as J.P. Morgan embark upon their redesign initiatives, they have to strike a balance. They cannot fall in love with technology introducing unnecessary change and flashy designs that may be appealing but, in the end, do not enhance their clients' abilities to improve business processes. Nor can they be too timid and miss the opportunity to truly reengineer and augment their online solutions and supporting back-end systems. Clients now are looking for an integrated end-to-end solution set. Striking the right design balance means keeping a focus on how these tools are used in a business setting. With ubiquitous broadband and Web 2.0 capabilities, portals can include multimedia content such as videos, chat, and Webcasts. It can be tempting to rely too heavily on design cues derived from consumer-oriented portals. Consumers are drawn to compelling visuals, social interactions, and entertaining content but when these same consumers are in work mode, they are likely to prefer simplicity and efficiency in their online experience. Another approach banks can adopt is to leverage existing, behind-thescenes plumbing and processing to support a new portal. This allows banks to improve the look of an aging user interface and create more consistency but limits the extent of new features that can be introduced. The balancing act must also include planning for transition. Millions of financial professionals are already using bank portals. Treasury and financial operations departments have designed their internal operations and processes around existing bank offerings. Despite the shortcomings of these solutions, the reality is that they work. Banks must balance new enhancements against the need to minimize disruption as clients transition from old systems to new systems. Steep learning curves and confusing designs can lead to resistance and can introduce errors not what banks are looking for from the significant investments they are making in their online channels. Page 2 #FIN231464R IDC Financial Insights

3 J. P. M o r g a n ' s A p p r o a c h J.P. Morgan's approach is focused on what customers require in a business context and a commitment to strong product engineering. To ensure that the development team understood how customers were using the current online solutions, the bank interviewed hundreds of the 25,000 clients using the legacy online solutions. The team worked with these customers to understand what works, what doesn't work, and why. The internal team was enhanced with industrial design experts who could provide insight and best practices from other industries and online destinations always keeping in mind that ACCESS is a business tool, not a flashy consumer-oriented application. With the help of customers and experts, the team had a clear understanding of what functionality needed improvement and found some hidden gems to wrap into the solution for its ACCESS customer base. Design: It's About Doing Business Building upon what has been learned from successful user interface designers, J.P. Morgan has focused its overriding philosophy on keeping the user interface simple and intuitive. Clients using the solution do not want to be distracted from the job at hand, and they also don't want to relearn how to complete everyday tasks. One way this is manifested is in the home page, as shown in Figure 1. The home page is not about drawing in clients to read about new product announcements or what's happening out in the world. Instead, it's about productivity. The content of the home page is mostly links that bring the client right to the task at hand with one-click access to most major tasks IDC Financial Insights #FIN231464R1 Page 3

4 F I G U R E 1 J. P. M o r g a n A C C E S S H o m e P a g e Source: J.P. Morgan, 2012 Another example of the focus on business is in the supplemental resources that are available to clients. Clean design doesn't end with the user interfaces; it extends into documentation and welcome kits to transition clients onto the new platform. No manuals or training guides are issued to clients. Instead, a readiness site has been established with pertinent information for clients preparing to transition. Once clients have moved to the new platform, they have access to resources as needed. Training, FAQs, and product information are available in multiple media formats and on a separate tab that can be easily accessed when the client needs it. The bank is offering initial training sessions as well, but so far clients say they don't need it. Thus far, the clients can quickly figure out how to use the new portal, and any questions they have can be answered as they arise using the on-demand online resources. Don't Reinvent the Wheel One aspect of good design is leveraging what customers already know. One way to meet this goal is to reuse features that are inherent within the devices clients are already using. With this iteration of portal design, there is a base of users who are proficient on ACCESS, other bank portals, and many other tools. Standard methods of laying out screens, recognizable icons, and proven ways to navigate can provide a Page 4 #FIN231464R IDC Financial Insights

5 foundation for development. This is even more important when developing user interfaces for mobile and tablet devices where screen real estate is scarce. Taking full advantage of buttons and features that are incorporated into the devices allows clients to leverage what they already know creating a simpler user experience. For J.P. Morgan, not reinventing the wheel also meant building on work the institution had already done in its retail bank. Chase has an award-winning mobile banking platform, and the ACCESS mobile development team was able to learn from the retail group and reuse market-tested design elements. This meant that the ACCESS mobile solution could be developed with a very small team that could bring a solution to market in less than a year. A Hidden Gem: Cash Decision Worksheet In addition to supporting clients using the J.P. Morgan ACCESS platform, the bank is still supporting a handful of customers using its Insight treasury workstation. Although Insight is a legacy solution, the Cash Decision Worksheet is one capability that has proven to be incredibly valued by clients and thus will be built into the ACCESS platform (see Figure 2). It is no secret that the most commonly used software in corporate treasury is Microsoft Excel. Despite everything that banks and technology providers have done to deliver purpose-built solutions to the market, Excel remains an important component of virtually every technology group. However, Excel has some inherent limitations, which can be solved with the ACCESS Cash Decision Worksheet IDC Financial Insights #FIN231464R1 Page 5

6 F I G U R E 2 J. P. M o r g a n A C C E S S C a s h D e c i s i o n W o r k s h e e t Source: J.P. Morgan, 2012 The Cash Decision Worksheet is in a standard Excel worksheet, plus a J.P. Morgan developed Excel plug-in. Once the plug-in has been installed, the Cash Decision Worksheet can be deployed. With the plug-in, there are three important enhancements to the traditional Excel application: User access is controlled and governed by the administration setting established by each client's administrator. This ensures that only properly credentialed staff have access to the Cash Decision Worksheets. Fields can be mapped to J.P. Morgan and other bank accounts and refreshed automatically as needed. Clients can use rules to establish target balances or standing orders to transfer funds all within the Cash Decision Worksheet. J.P. Morgan already has a few hundred clients using this capability. These clients appreciate the balance between having the functionality and capabilities inherent to Microsoft Excel and the integration and security J.P. Morgan has built into the tool. What these clients have grown to rely on will soon be available to all ACCESS clients. Page 6 #FIN231464R IDC Financial Insights

7 New Capabilities Of course, J.P. Morgan has taken the opportunity to build in new capabilities on the ACCESS platform, focusing on mobility, administration, and community. Mobility All ACCESS customers have an opportunity to start using ACCESS Mobile. This platform is not just a streamlined version of the desktop solution; it is a built-from-the-ground-up mobile platform. Existing ACCESS functions that are appropriate to a mobile platform are available, making up about 70% of functions commonly performed by customers. Plans call for the continued, rapid rollout of new features, including new security features that leverage smartphone capabilities. The bank has just released an innovative voice authentication and swipe security sign-in. This is the first commercial banking portal that IDC Financial Insights has encountered with voice authentication capability. As shown in Figure 3, the mobile platform uses intuitive navigation and presentation techniques. In this screen shot, a user is provided with both summary and transaction details for a concentration account. From this one screen, and with one motion, the user can progress to another account, drill into the posted transactions to view more detail, or move on to another set of features IDC Financial Insights #FIN231464R1 Page 7

8 F I G U R E 3 A C C E S S M o b i l e A c c o u n t B a l a n c e a n d T r a n s a c t i o n S c r e e n Source: J.P. Morgan, 2012 Administration A redesigned common administration module is used for all ACCESS solutions. Entitlement management is both simple and powerful a delicate balance. J.P. Morgan has developed workflows, organizational tools, and integration with back-office systems to simplify what can be a complex and potentially error-prone process. It provides clients with a range of layered security controls that can be optionally deployed based on customer preferences and transaction risk levels. Customers are able to perform tasks that used to require hours, or weren't even available before, in minutes. This includes the ability to establish Account and User Groups to streamline the entitlement process. Community The business value of social networking is becoming clear, and J.P. Morgan has rolled out a community-based destination for training, product information, online chat, and forums. The bank is using this platform to engage its commercial clients providing them with convenient support tools in a variety of media formats. In addition, the road map includes plans to produce individually relevant information on breaking topics or complex issues such as regulatory requirements. This is a destination that is business focused and encourages collaboration to meet business goals as appropriate for each client and user. Page 8 #FIN231464R IDC Financial Insights

9 G e t t i n g S t a r t e d As important as it is to get the design right, planning for migration is equally demanding. The stakes are high clients who can't navigate through new administrative tools or who struggle to figure out how to do their day-to-day tasks will have a bad first impression and will likely resist the change. Simplicity is again J.P. Morgan's guidepost as the company converts hundreds of thousands of customers from the ACCESS they know to the new version. Clients are being migrated over a multiyear time frame as the new platform reaches parity with existing customer product usage. As clients prepare for the transition, the bank is striving to deliver a clear and concise message. The migration team has taken care not to overload customers with information; instead, it communicates only what clients need to know, when they need to know it. Clients are provided with access to resources and specialists if they require additional support. With the clients who have already been transitioned, the results of this strategy have been positive. The intuitive design of the ACCESS desktop and mobile user interfaces is paying off as clients require very little documentation, training, or support through the process. C h a l l e n g e s t o S u c c e s s The full results of this strategic initiative cannot be known until initial goals have been met and milestones passed. The following challenges remain: J.P. Morgan now has more than 2,000 client deployments globally. Those clients transitioning later in the timeline are typically the largest, with more complex product sets. J.P. Morgan must learn iteratively and adjust as needed to make sure that it is prepared for more complex clients as they are brought on board. Even after all clients have migrated to the new platform, J.P. Morgan must stay focused on delivering new capabilities so that this platform can remain cutting edge. In particular, we expect use of consumer-owned devices such as tablets to become more prevalent in a business context. As usage increases, clients will look for more capabilities and new ways of using features embedded in the devices. J.P. Morgan will be expected to evolve its solution and keep pace with its clients' demands. N e x t - G e n e r a t i o n A C C E S S D e l i v e r s As clients perform tasks, we anticipate that they will use multiple platforms depending upon their needs and preferences. The desktop solution is appropriate for analysts who are initiating transactions, 2012 IDC Financial Insights #FIN231464R1 Page 9

10 working to tight deadlines, and establishing cash positions. Treasurers will likely find the "Quick Decision" feature helpful allowing them to get a projected cash position instantly based on target thresholds and anticipated transactions. Figure 4 provides an example of the "Quick Decision" tool on a tablet device. F I G U R E 4 " Q u i c k D e c i s i o n " S c r e e n o n a T a b l e t Source: J.P. Morgan, 2012 Clients moving between devices and modules will find a common thread. They will experience easy and seamless access to J.P. Morgan financial services. The balance of consistent design, back-end system integration, and multiple platforms provides clients with a powerful tool to improve financial operations. J.P. Morgan is investing in this technology tool to help its clients become more efficient and to do their jobs better with quicker access to financial information wherever they happen to be. As clients migrate to the new platform, they will find that this next iteration leverages what they like about and already know from legacy ACCESS. New enhancements were designed based on client input and vetted by hundreds of clients across a broad range of sizes, industries, and geographies. Throughout the design and build process, clients informed Page 10 #FIN231464R IDC Financial Insights

11 the development team about what they liked, what wasn't quite right, and what they really need to get their jobs done. This feedback informed each iteration of development to ensure that the result strikes the right balance between simplicity and business requirements. C o p y r i g h t N o t i c e Copyright 2012 IDC Financial Insights. Reproduction without written permission is completely forbidden. External Publication of IDC Financial Insights Information and Data: Any IDC Financial Insights information that is to be used in advertising, press releases, or promotional materials requires prior written approval from the appropriate IDC Financial Insights Vice President. A draft of the proposed document should accompany any such request. IDC Financial Insights reserves the right to deny approval of external usage for any reason. This document has been reprinted by J.P. Morgan with permission from IDC Financial Insights. All trademarks, trade names, and service marks appearing herein are the property of their respective owners IDC Financial Insights #FIN231464R1 Page 11