JP Morgan Chase & Co, one of the world’s biggest banking and financial services company, has a massive technology budget of $9.6 billion and employs around 20,000 developers. They are trying to leverage modern technology to drastically reduce the workload on its lawyers. Their strategy has focused mainly on developing tools that could automate mundane tasks for bankers as well as clients.
Finally, they are seeing some of the efforts pay off. Their new software, called Contract Intelligence (COIN), has the task of interpreting commercial-loan agreements and was implemented in June last year.
The task, when done by lawyers and loan officers, could take up as many as 360,000 hours of work annually. COIN, on the other hand, is capable of reviewing documents in mere seconds. It is also less prone to error, specifically cutting down on loan-servicing mistakes— a common human error.
The software is the result of some huge investments made by JP Morgan in technologies like machine learning as well as a new private cloud network. The biggest bank in the United States, the firm has set up technology hubs for teams specializing in fields like big data, robotics and cloud infrastructure and keeps a track of around 2,000 technology ventures.
Work, which could previously take hundreds of thousands of lawyer hours, is now being done with the help of a software that uses machine learning and big data. Automation softwares are in demand these days. A Pakistani entrepreneur also caught the headlines recently when he, bored of the repetitive work he was required to do, automated his whole job, and then made a thriving startup out of it.
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