At JPMorgan, a learning machine is parsing financial deals that once kept legal teams busy for thousands of hours.
The program, called COIN, for Contract Intelligence, does the mind-numbing job of interpreting commercial-loan agreements that, until the project went online in June, consumed 360,000 hours of lawyers’ time annually. The software reviews documents in seconds, is less error-prone and never asks for vacation.
COIN is just the start for the biggest U.S. bank. The firm recently set up technology hubs for teams specialising in big data, robotics and cloud infrastructure to find new sources of revenue, while reducing expenses and risks.
The push to automate mundane tasks and create new tools for bankers and clients — a growing part of the firm’s $9.6 billion technology budget.
Behind the strategy, overseen by Chief Operating Officer Matt Zames and Chief Information Officer Dana Deasy, is an undercurrent of anxiety:
though JPMorgan emerged from the financial crisis as one of few big winners, its dominance is at risk unless it aggressively pursues new technologies, according to interviews with a half-dozen bank executives.