- JPMorgan, headed up by CEO Jamie Dimon, is the biggest US bank by assets.
- The firm wants to hire 1,500 private bank advisors. It’s also making branches a part of its wealth push.
- JPMorgan is buying UK roboadvisor Nutmeg.
- Visit Business Insider’s homepage for more stories.
JPMorgan is the biggest bank in the US and a bellwether for the global financial system. So when the firm’s senior-most leaders talk, Wall Street pays attention.
Private banking and wealth management are a key part of JPMorgan’s future.
In the past year, the bank has hired about 100 advisors for its private-bank division, which oversees more than $836 billion in client assets and caters to individuals worth at least $10 million. JPMorgan plans to hire as many as 1,500 new advisors over the next five years, doubling its current private-bank advisor head count, Private Bank CEO David Frame told Insider.
The bank this month also said it’s buying UK robo-advisor Nutmeg, which oversees some $4.9 billion for around 140,000 investors. The 9-year-old startup already used portfolios with active and passively managed exchange-traded funds provided by JPMorgan Asset Management.
JPMorgan has big plans for employees at the bank’s roughly 4,900 US branches. The bank is aiming to have all US branches staffed with licensed relationship bankers who can offer investment advice to clients by the end of the year, Insider has learned.
Wealth management plans
JPMorgan is planning to significantly expand its financial advisor force, bringing the firm closer in size and scope to its rival firms in wealth management. Over the next five to six years, the bank is considering hiring as many as 4,000 advisors to roughly double its current base, US Wealth Management Chief Executive Officer Kristin Lemkau told Business Insider this fall.
Lemkau, who has been with the bank for over two decades and was previously its chief marketing officer, was named head of JPMorgan’s new wealth division in December 2019. Its various wealth businesses, including its self-directed wealth product, were reorganized under one umbrella.
Read more on JPMorgan’s wealth management plans:
- How JPMorgan is doubling down on digital investing with its robo-advisor acquisition
- JPMorgan Chase is aiming to staff all US branches with licensed bankers who can offer investment advice by the end of the year
- JPMorgan’s private-bank CEO is gearing up to go on a hiring spree to add 1,500 advisors. Here’s why he’s targeting talent in Florida and California.
- How JPMorgan’s Kristin Lemkau is planning to turbocharge the firm’s $500 billion wealth business, from a rebrand and ramping up advisor training to new tech
- JPMorgan’s wealth boss Kristin Lemkau is eyeing plans to hire as many as 4,000 advisors as she lays out ambitious plans to catch up to the firm’s rivals
Recent leadership shakeups and new hires
The bank on May 18 promoted two women to co-lead the firm’s massive consumer and community banking business: consumer-lending chief Marianne Lake and chief financial officer Jennifer Piepszak. The pair will take over running the division from Gordon Smith, who’s retiring this year from his roles as co-president and co-chief operating officer of the firm and CEO of CCB.
The moves shine a light on succession planning at the firm, as Lake and Piepszak are two of the top contenders to take over for CEO Jamie Dimon when he eventually retires. Smith had also been rumored to be in the running for the top job before announcing his retirement.
- JPMorgan CEO Jamie Dimon says he intends to stay in his role for a ‘significant amount of time’ despite a recent leadership shake up hinting at his succession plan
- JPMorgan just named 2 new co-heads of consumer banking, and the leadership shakeup gives clues to who will eventually take over from CEO Jamie Dimon
JPMorgan in May named James Reid and Melissa Goldman to be CIOs of two newly-formed groups to help modernize tech for employees.
Reid is CIO of the firm’s employee experience and corporate technology organization, which is modernizing the tech employees use internally. And Goldman, also the firm’s chief data officer, is CIO of the finance, risk, data, and controls (FRDC) technology group.
JPMorgan also hired another ex-Marcus executive, Sherry Ann Mohan, chief financial officer for business banking, CNBC first reported. Mohan, who will start August, was previously at Goldman Sachs for 15 years and most recently the CFO of the consumer business, including the Marcus brand and Apple Card..
More on people moves here:
- JPMorgan just named 2 CIOs to newly formed groups focused on improving employees’ experience using the bank’s tech
- JPMorgan Chase poached a top Marcus exec along with key hires from Wells Fargo and Google to support a ‘huge agenda’ for digital banking