J.P. Morgan To Provide Account Validation Service To Federal Government

(RTTNews) - American banking major JPMorgan Chase & Co. (JPM) announced on Tuesday that it has been selected to provide account validation services for federal government agencies by the United States Treasury Department under a financial agency agreement.

The program is awarded for a minimum of five years.

In this role, the bank will verify critical payment information for the federal government before payments are issued using its extensive network of secure customer information as well as industry data that the bank regularly accesses for payment processing.

In fiscal 2022, Fiscal Service disbursed nearly 1.4 billion payments for federal agencies totaling $5.27 trillion, including Social Security and Medicare payments, unemployment insurance, and tax refunds. The federal government reported an estimated $247 billion in improper payments during the 2022 fiscal year.

This is the latest assignment for the bank from the treasury department. JP Morgan has played different roles in recent years advising the treasury as it digitizes its payment systems and modernizes its operations to pay and receive money from citizens and businesses.

In pre-market activity, shares of JP Morgan are trading at $145.54 up 0.42% on the New York Stock Exchange.