JPM Industry Insights Flashcards
First Republic Bank (2023)
Strengthens JPM’s deposit base and wealth management capabilities. It added high-net-worth clients, enhancing JPM’s share in private banking and strengthening its presence in affluent coastal markets.
Aumni (2023)
A move into private capital analytics—positioning JPM as a data-driven partner for venture and growth investors. Helps digitize private markets, a major growth area.
RenovITe (2022)
Boosts JPMorgan’s payments modernization, enabling faster deployment of cloud-native payment rails to compete with fintech disruptors in real-time payments
Impact of Trump tarrifs on bottom line
Indirect impact if we enter into a recession
Consumer NIM will be lower
Clients in manufacturing, agriculture, or import-heavy sectors may face liquidity crunches or demand credit.
Market volatility might boost trading and hedging revenue, but could also slow investment banking (e.g., M&A)
Primary fintech competitors
Stripe and Square: Dominant in digital payments. JPM is competing via modernized payment infrastructure (RenovITe, Kinexys) and embedding finance in B2B flows.
Plaid and Tink: Offer data aggregation and open banking APIs. JPM acquired OpenInvest and expanded developer tools to match.
Robinhood: Democratized investing. JPM’s You Invest platform targets retail users, and the firm is leveraging Chase digital apps to consolidate user touchpoints.
Neobanks (Chime, Revolut): JPM counters with Chase UK and pending Germany launch, focusing on digital-only retail banking abroad.
why did JPM create JPM Coin at all?
- It’s meant for internal and institutional use — to help large corporate clients move money instantly inside JPMorgan accounts.
- Think of JPM Coin as an enterprise-grade private stablecoin for JPM clients.
- But it’s not designed for public use like USDC or ETH.
What are treasury payments?
Treasury payments refer to the movement of money within a company to manage things like:
Paying suppliers
Transferring funds between accounts
Managing payroll
Handling taxes, investments, or FX transactions
Sweeping excess cash from one account to another (called liquidity management)
These aren’t customer-facing transactions — they’re about keeping the internal finances of a business running smoothly and efficiently.
Think of it as the “heart” of a business pumping money through its system.
EXAMPLE:
Let’s say a global company like Apple works with JPMorgan as its bank.
Apple has cash in dollars in the U.S., but it needs euros to pay a supplier in Germany.
It also wants to move some excess cash to its investment account to earn interest.
These transfers must be fast, secure, and ideally instant, especially if they operate 24/7 across time zones.
That’s where JPM Coin or a stablecoin comes in — to move money internally or cross-border instantly without waiting for banks to open.
Strategic value of supporting other coins?
Yes — expands reach, flexibility, and Kinexys adoption
Strategic and financial value of investing in blockchain and digital currencies for JPM
JPM’s clients are massive corporates, not retail users. They care more about speed, security, and efficiency than per-transaction cost.
By making transfers cheaper and faster, JPM is defending against fintech and blockchain-native challengers.
It’s not losing money — it’s preserving client relationships and creating new monetizable layers on top of core banking.
