Company to Watch: Fintech at JPMorgan
Fintech is big at JPMorgan Chase. In 2016, the financial powerhouse spent approximately $600 million on emerging fintech solutions, with some exciting new products and services on the near horizon:
- End-to-end digital banking will allow customers to open an account and complete the majority of transactions on a mobile phone.
- Online vehicles for individual retirement and non-retirement accounts will provide easy-to-use, inexpensive automated advice, and the ability to complete investment transactions (buy and sell stocks and bonds, for example) easily and affordably.
- A more robust digital platform for electronic trading and other online services (cash management) for Corporate & Investment Bank and Asset & Wealth Management clients.
Investing in technology — from digital to big data to machine learning — benefits customers, a spokesperson says, with better, faster and often cheaper products and services, reduced errors and greater efficiency.
“We believe Delaware is a great place to do business. There’s a tremendous talent pool of employees — especially in technology, financial services, risk and analytics,” says Bill Wallace, JPMorgan Chase’s chief administrative officer for Delaware.
The company also benefits from a supportive state government and a vibrant financial community. About a third of Chase’s 10,000 employees work in technology.
“Delaware is one of our technology and operations hubs, so we are able to offer technologists long and varied careers here, working in different businesses and on different types of products,” a spokesperson says.
JPMorgan Chase fosters innovation in fintech by supporting local initiatives, including the Innovation Center at UD, where students can work on internships right on campus, and the Center for Financial Services Innovation’s Financial Solutions Lab. The lab seeks to facilitate the next generation of fintech products to help consumers manage their daily finances and meet their long-term goals. Accomplishments include:
To date, the lab has helped support more than 18 fintech companies working to improve the financial health of more than 1 million Americans. One example is Digit, an automated savings tool that identifies small amounts of money that can be moved into savings based on spending and income. To date, it has helped Americans save more than $350 million.
Lab winners have raised more than $100 million in follow-on capital.
In 2017, the lab launched a new competition seeking innovative fintech solutions to promote the financial health of populations often overlooked, such as people of color, individuals with disabilities and low-income women.