JP Morgan has invested into, further cementing its relationship with the compliance vendor after the two sides entered a strategic alliance last September.

No financial details were disclosed, however GTR understands the bank is taking a small equity stake in Cleareye through a minority investment.

Established in 2019, Cleareye’s main offering is the ClearTrade platform, which uses artificial intelligence and machine learning to streamline processes in collections and documentary credits. It classifies trade finance documents, extracts and validates relevant data, conducts critical sanctions screening and anti-money laundering checks, and ensures compliance with ICC rules such as UCP600, ISBP745 and URC522. It is also integrated with third-party proprietary databases, facilitating checks on important trade transaction aspects such as vessel tracking, involvement of sanctioned vessels or ports, presence of military or dual-use goods, and bill of lading verification.

In 2022, JP Morgan selected the ClearTrade solution to help digitise its trade finance processes, and by January this year had integrated all three of the solution’s modules – digitisation, compliance and auto doc exam – into its systems. The alliance also enabled Cleareye to incorporate over two years of JP Morgan’s discrepancy resolution across the full letter of credit lifecycle and amendment handling into its solution, thereby strengthening its value proposition.

The investment, which JP Morgan calls a “natural next step”, will enable Cleareye to further enhance its product offering, says Mariya George, Cleareye’s CEO and co-founder.

“The strategic alliance was focused on JP Morgan sharing its story with correspondent banks and helping the banks take advantage of what JP Morgan is doing,” she tells GTR. “The investment confirms JP Morgan’s belief in Cleareye’s product and leadership, helping Cleareye enhance our product offerings and bring long-term value to financial institutions across the world.”

“The investment will be used to reinvest in our technological innovation, in our marquee product ClearTrade, to make it the best in the market and bring it to the forefront of banks’ digital strategies. We will also be expanding our client footprint into Europe and the Mena region,” she says.

“Future-proofing trade operations has been at the forefront of JP Morgan’s digital strategy in trade and working capital,” adds James Fraser, JP Morgan’s global head of trade and working capital. “A manually intensive industry loaded with paper and lacking standardisation, burdened by an increasing cost base, needs real innovation in order to transform. We are delighted to invest in as they deliver this innovation through meaningful solutions for us and our global financial institution clients.”

In addition to the investment, says it will continue to work with JP Morgan to enhance its offering, maintaining what it calls a “gold standard” in digital innovation from which all trade finance banks can benefit.