JP Morgan keeps fintech firmly within its sights with big investment
JP Morgan Chase had a massive year of tech investment in 2016, which included the hugely influential and optimistic injection of $600m into fintech.
CEO of the company Jamie Dimon came forward in detailing the $9.5 billion 2016 tech investment in a letter to shareholders. The move has confirmed the company’s confidence in technology, with Dimon saying that this focus and belief in tech is the reason that the company has continued to perform well.
A central project outlined in the shareholder letter is a new initiative to make digital banking ‘end-to-end’ for users. This is set to include giving users the ability to set up and open an account, and carry out transactions from a mobile phone.
JPMorgan Chase has also tapped into the hive of activity within tech innovation, placing a colossal $3 billion of the $9.5 billion investment in up and coming initiatives, new ideas that are set to be disruptive.
Detailing the Fintech cash injection, Mr Dimon said: “Of that amount, approximately $600 million is spent on emerging fintech solutions – which include building and improving digital and mobile services and partnering with fintech companies.
“The reasons we invest so much in technology (whether it’s digital, big data or machine learning) are simple: to benefit customers with better, faster and often cheaper products and services, to reduce errors and to make the firm more efficient.”
Taking this course of investment action, the company achieved a record $24.7 billion net income in 2016. Dimon said: “We have delivered record results in six out of the last seven years, and we hope to continue to deliver in the future.” This positive consistency can be marked as an even greater achievement due to the particularly challenging aftermath of the 2008 crash.