US banking giant JP Morgan has acquired payments fintech Renovate Technologies to support its strategy to put its IT in the cloud.
It wasn’t too many years ago that large traditional banks showed reluctance to move systems to the cloud, but today they are accelerating the process through acquisitions of fintech firms, or fintechs.
Renovite Technologies’ cloud-native payments technology will become part of JPMorgan Payments and support the bank’s move to cloud-based IT.
JPMorgan said the acquisition will help it achieve its goal of “developing the next generation payment processing platform globally.”
“Renovite’s cloud-native merchant acquisition capabilities are already helping us better serve our customers. As the Renovate platform integrates with JPMorgan Payments, merchant receiving customers will be able to accept more methods of payment around the world to help grow their business,” said Mike, global head of payments technology at the bank Blandina said.
Viren Rana, CEO and Founder, Renovite, said that the mission of the fintech was to provide modern infrastructure in the cloud with the latest technology.
“We are very proud of the team and the world-class payment technology that we have built and are excited to be part of JPMorgan Payments. This business is the natural home for our people and technology,” Rana said. JPMorgan Payments will help us realize our combined vision to deliver world-class payment capabilities globally through next-generation infrastructure for customers.”
Renovate is headquartered in California and has offices in the UK and India.
Details of the acquisition’s value were not disclosed, but it is another example of JPMorgan using its financial resources to keep pace with fintech developments.
Traditional banks are trying to move away from outdated IT systems, which are costly to maintain, and through the migration of systems to the cloud when it comes to launching new digital offerings. With large amounts of capital, they often acquire fintechs operating in specific areas to support this strategy.
By partnering with fintechs, banks are replacing legacy systems developed in-house with cloud technology. For example, US Bank’s retail banking business, JPMorgan Chase, is replacing its core system with a cloud-native system from a UK fintech thought machine. The supplier’s Vault platform will enable the bank to take full advantage of the cloud for core banking.
