JPMorgan Chase & Co. is holding its annual Investor Day this Tuesday. At the event, the bank presents the most significant areas for potential growth and discusses advances in successful investments. One such project is code-named COIN.
COIN stands for Contract Intelligence, and it is a piece of software that reviews and interprets commercial loan agreements. The program does in seconds the job that takes employees thousands of hours.
The financial entity plans on investing more on automation processes within the company, potentially leading to an organizational shift once workers are left without a job. COIN already threatens to do this at JPMorgan.
What is COIN and how does it work?
COIN harnesses the power of machine learning to process, analyze, and interpret commercial loan contracts. The system finds patterns and recognizes them over time, learning not to make interpretation mistakes based on past decisions.
Hundreds of JPMorgan lawyers and analysts took as much as $ 340,000 reviewing 12,000 agreements per year. This task is now up to COIN, who can do it in significantly less time to increase efficiency and reduce costs.
The positive implications are obvious, but on the other side of the coin, workers are almost doomed to find themselves without a job once the program completely takes over and renders them useless to the company.
In the meantime, employees and machines continue to work side by side at JPMorgan, the biggest bank in the United States. Heads of investment at the firm pointed out how technology has become a major factor to increase earnings in the future.
JPMorgan will invest heavily in tech in the next couple of years
In spite of fear from workers of being phased out by technology, this is precisely the area with the biggest investment potential for JPMorgan. The giant financial plans to redirect resources all over the tech industry in the search for profits.
The coin-like software is already in use at the firm. X-Connect is a smart program that finds and makes professional connections between employees within the company to set them up to work together and know each other.
Similar systems may be implemented to deal with other types of legal documents like custody agreements, financial regulations, credit-related filings, and even corporate communications later on.
America’s largest bank has an investment budget that exceeds the $9 million mark. This represents a third of the company’s overall funds, and they want to make that sum even larger to drive 40% of all their money into new initiatives in the next couple of years.