J.P. Morgan has announced that it has been designated by the US Treasury Department under a financial agency agreement to offer account validation services for federal government agencies.

Per the announcement information, the programme was awarded to J.P. Morgan following a competitive selection process and is set to extend for a minimum of five years. Account validation services for the US Treasury and J.P.

Morgan’s role The agreement with J.P. Morgan comes as a reflection of the important role that account validation plays in the Treasury’s commitment to payment integrity and the reduction of improper payments. Within the 2022 fiscal year, Fiscal Service disbursed approximately 1.4 billion payments for federal agencies amounting to a total of USD 5.27 trillion, including Social Security and Medicare payments, unemployment insurance, and tax refunds.

Improper payments caused by fraud or clerical errors can delay the delivery of critical funds to rightful recipients, lead to financial losses, and erode public trust in government services. According to the US Government Accountability Office, the federal government reported an estimated USD 247 billion in improper payments, which includes overpayments, underpayments, and payments that should not have been carried out. In this new role, J.P.

Morgan is going to verify critical payment information for the federal government before payments are issued. Based on the press release information, the bank’s advanced technology will help verify payment details leveraging its extensive network of secure customer information as well as industry data that the bank regularly accesses for payment processing. The bank currently moves on average more than USD 9 trillion on a daily basis and has made significant investments in real-time payments and other secure payment technology in the past years.

What is more, account validation comes as J.P. Morgan’s most recent assignment for the Treasury Department, as the bank has taken on different roles in recent years, providing advice to the Treasury as it digitises its payment systems and modernises its operations to pay and receive money from citizens and businesses alike in an increasingly efficient manner. When commenting on the announcement, J.P.

Morgan company representatives said that they are honoured to be selected to offer account validation services to the US federal government agencies. More to this point, the spokesperson said that it comes as a significant testament to the company’s capabilities, and it is particularly gratifying that the work is set to help provide money to Americans in a faster, safer, and more accurate manner, while simultaneously saving taxpayer dollars. About J.P.

Morgan’s Corporate & Investment Bank J.P. Morgan’s Corporate & Investment Bank activates across the banking, markets, and securities services industries, with corporations, governments, and institutions entrusting it with their business in over 100 countries. With USD 30.4 trillion of assets under custody and USD 647.5 billion in deposits as of June 2023, the Corporate & Investment Bank offers strategic advice, raises capital, manages risk, and extends liquidity in markets around the world.

.