Phil Frimpong, what are the roles and specificity of the CIO function?

“The key functions of the CIO/CTO role are multiple and varied. One of the most important aspects of the job is to ensure the availability of online systems to the user and the correct operation of overnight batch process and backups. Another key responsibility is the adherence to the firm’s and regulator’s risk and data control policies. Finally, the CIO/CTO needs to cultivate an understanding of the business. This enables the CIO/CTO to ensure appropriate technology solutions are implemented on time and within budget. Developing and maintaining business and third party relationships are important for creating a successful technology strategy.

Do the CIO’s roles and functions fundamentally differ when the company operates in the finance or banking business?

“In the 21st century, IT is seen as a key driver and a competitive edge for business. Most companies will not survive today without a good technology backbone.

While some sectors of industry do not share this view, the banking sector has long integrated technology into its strategic decisions. Due to the nature of the business, in addition to the provision of innovation and stability, the banking sector has and will continue to focus on security, transparency, customisation, privacy, and change control.

What are the day-to-day tasks of a CIO at the JP Morgan group?

“The JP Morgan Bank Luxembourg Head of Technology function is the single point of contact for technology governance, ownership, and oversight of all technology provided by our internal and external partners. This role involves understanding the business and client requirements, tracking the execution of projects, initiatives, and strategy. Tracking spend and seeking out efficiencies are also part of day-to-day working culture.

What particular management skills and competencies does this involve on the field?

“Managing technology at JP Morgan Bank Luxembourg means being a good manager and having a technical understanding to ensure that the technology provision is fit for its purpose and in line with the Luxembourg regulations. People are a significant part of the success story in Luxembourg. I try to use a clear management style and direction in order to ensure that the technology staff are supported and encouraged to be innovative in order to improve processes.

Should a CIO necessarily be part of the company’s executive committee?

“It is important that a CIO is part of the key management team and has business acumen. Due to the fast-changing nature of IT and of our business, it is important to have a first-hand understanding of the business goals and challenges. Being part of the decision-making process means the IT department can package a solution which has the agreement of all parties. Useful technology is always driven by business strategy.

What is your role and contribution within JP Morgan’s executive committee?

“As a member of the Luxembourg senior management team, it is important to be part of the key business decisions, and to have business acumen. As previously stated, it is important to have a first-hand understanding of the business. By knowing the services being provided to our customers, I can advise the senior management team which technology could help to achieve our goals. I then engage the various technology teams to achieve the desired results.

Should a CIO come from the field or be primarily a manager?

“Both, I guess. It is important to have a good understanding of technology in order to make informed decisions, but it is also important to balance this with strategic thinking and good management skills.

What is the ideal background for a CIO, when the company specialises in finance?

“An ideal CIO should have an extensive knowledge of technology, financial processes, and a proven track record of running stable mission-critical environments.

He or she will have successfully participated in many project/system implementations, as well as managing technical teams using excellent interpersonal and communication skills.

What are the career opportunities and the possible promotions for a CIO? In general and within the JP Morgan group?

“JP Morgan is a strong advocate of development and internal mobility. If one has a good understanding of the line of business, there is no restriction to engage more on the business side, should the opportunity arise. There is also room to expand the role outside one’s geographic boundaries. I moved to Luxembourg to look after the Luxembourg office. Later I expanded my role to be responsible for Germany in addition to Luxembourg, and now I have added Dubai to my remit. This is a real example of how JP Morgan promotes development at all levels.

What could be the main impacts and consequences of the actual turmoil on/for the company’s IT activities?

“Technology plays a critical role in the banking sector. It is more important than ever to keep technology current and stable. There are many examples of institutions going out of the market during market peaks due to either the inability of systems to hold the increased load (capacity) or failures due to uncontrolled technology changes. The key is to always control changes to the technology environment in order to maintain the integrity of systems.

In this context, what are your priorities?

“I would stabilise the environment by restricting unnecessary changes, and continue with our strict capacity planning of all key elements (memory, CPU, storage...). Additionally, I would ensure the availability of key staff and keep the escalation process up to date so that it is clearly understood. Communication and the heightened awareness of volatility across the board are fundamental for users, staff, management, and clients.

In a crisis context, how can a CIO concretely help and support the company in its adaptation strategy?

“Flexibility and scalability should always be key elements of any strategy. No one knows the future for sure except that it’s coming! Stability and predictability of systems under pressure is key to the success of the business.

What are the major challenges a CIO has to face today?

“As technology changes at a significant speed, it is important to keep up with the latest developments in order to keep up or to customise legacy systems to meet the business needs. The challenge is that if one cannot keep up with the change, it could have a dramatic impact on business. This, however, must be balanced with our aim for green and sustainable IT infrastructure at a reduced running cost.

How specific are these challenges, when the company operates in the finance and banking business?

“A key factor to consider in the banking business is the competitive edge versus technology stability. It is important to ensure only tested and proven technology is introduced in order to ensure the business and our clients are not compromised in the quest to have the latest technology.

How do you see the future of the profession? What will be its main challenges?

“With market changes, competition and regulatory requirements, there is an increased need for automation of systems. Safe, secure communications and business process automation are very important factors for a bank to do business all around the globe. It’s all about risk management, efficient infrastructure, and product enhancements to meet the changing face of banking.

Which major divergences do you see between IT culture and company culture, within your institution? How do you cope with them? How do you prevent them?

“I do not see major divergences between IT culture and the culture at JP Morgan. IT works side by side with our partners in product and operations to improve the client experience. Our common goals are streamlining our technology environment while implementing additional product features. The efficiency, stability, and cost effectiveness of technology are a large part of our customer service experience, both internally and externally. I feel very connected to the business and culture of JP Morgan in Luxembourg. I am part of every important business discussion being made by the Luxembourg senior management team.

How do you manage the Generation Y? How do you respond to their needs and expectations?

“JP Morgan has a strong graduate training programme to attract, motivate, develop and retain high-caliber, entry-level talent from leading universities worldwide. It is very important to have a robust management programme to track the development and progress of all staff, and I am pleased to say, it’s something we do well.

How do you integrate the older generation and the digital natives together?

“JP Morgan is a very diverse institution with a strong culture of creating an inclusive workplace.

On which criteria do you choose the technology to implement and your suppliers?

“JP Morgan has strong engineering teams who test technology in a lab environment and certify them for a specific purpose. It is important to have a global standard to work with in order to have a good control and understanding of any potential exposure. Every third party vendor undergoes a strict selection criterion which covers various checks and in some cases audits before we do business. It is important to have a key number of suppliers. As per the regulatory requirements in Luxembourg, our preference for local vendors tends to be those approved by the financial regulator with a PSF status.

What is JP Morgan’s approach in terms of IT security and safety?

“JP Morgan takes IT security very seriously. There are many information security and risk standards which cover the way we handle all aspects of IT. These policies include server security baselines, data classifications, handling data, technology usage, media destruction, managing and regular reviews of third party vendors, remote connectivity, change management and crisis management.

These policies have been established to protect the firm and to meet the various regulatory requirements within which we operate.”

 

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CV - From criminology to IT

Born in 1972 in London, Phil Frimpong holds a BSc degree in IT and criminology. He joined JP Morgan London in 1998 before being appointed the EMEA branches technology team as a transitions and service manager. Initially sent to Luxembourg for a one-week business trip, Phil Frimpong stayed for three years as head of IT in Luxembourg with the task of restructuring the IT organisation to provide a service based on business and location strategy. After a short period back in the UK, he joined the senior management team as Technology Head.

M. A.