How JPMorgan plans to boost wealth management and battle fintech competition

Jamie Dimon
JPMorgan CEO Jamie Dimon

  • JPMorgan, headed up by CEO Jamie Dimon, is the biggest US bank by assets.
  • The bank has big plans for wealth management growth.
  • JPMorgan also made new digital banking hires, including poaching an exec from Goldman.
  • 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.

The bank is set to report first-quarter earnings on Wednesday, April 14. Earlier this month, CEO Jamie Dimon published his annual shareholder letter.

JPMorgan has also recently nabbed three new hires for its digital and product leadership team for consumer and community banking (CBB) from some of its biggest competitors.

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Recent hires and exits at JPMorgan

Sonali   Headshot SDivilek
One of JPMorgan’s recent hires is Sonali Divilek, who was a key executive at Goldman Sachs’ Marcus in charge of products.

JPMorgan on April 13 announced three new hires to support its consumer- and community-banking team.

Sonali Divilek, who was the head of product at Goldman Sachs’ Marcus, is one of the hires. The departure of Divilek, whom Chase said would be joining the bank this summer as the head of digital channels and products, represents a blow for Goldman’s consumer business as it looks to compete amid a raft of leadership and engineering exits.

Thasunda Brown Duckett, a rising star at the firm and the first Black woman to join its influential operating committee, left JPMorgan in February to lead financial services and retirement firm TIAA. Jennifer Roberts, who headed the firm’s business banking group, was named the bank’s new consumer head in March.

More on people moves here:

Wealth management plans

MASPETH, NY - NOVEMBER 17: Shivani Siroya, Kristin Lemkau and Stephanie Cohen speak onstage at Girlboss Rally NYC 2018 at Knockdown Center on November 17, 2018 in Maspeth, New York. (Photo by JP Yim/Getty Images for Girlboss Rally NYC 2018)
Kristin Lemkau, center, the chief executive of JPMorgan’s US wealth management business.

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:

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Inside JPMorgan’s plans to boost wealth management and battle fintech competition

Jamie Dimon
JPMorgan CEO Jamie Dimon

  • JPMorgan, headed up by CEO Jamie Dimon, is the biggest US bank by assets.
  • The bank has big plans for wealth management growth.
  • JPMorgan is also looking to bring workers back to offices, including a new Manhattan HQ.
  • 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.

The bank is set to report first-quarter earnings on Wednesday, April 14. Earlier this month, CEO Jamie Dimon published his annual shareholder letter.

Read more:

Wealth management plans

MASPETH, NY - NOVEMBER 17: Shivani Siroya, Kristin Lemkau and Stephanie Cohen speak onstage at Girlboss Rally NYC 2018 at Knockdown Center on November 17, 2018 in Maspeth, New York. (Photo by JP Yim/Getty Images for Girlboss Rally NYC 2018)
Kristin Lemkau, the chief executive of JPMorgan’s US wealth management business.

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:

Recent hires and exits at JPMorgan

Thasunda Brown Duckett, a rising star at the firm and the first Black woman to join its influential operating committee, left JPMorgan in February to lead financial services and retirement firm TIAA. Jennifer Roberts, who headed the firm’s business banking group, was named the bank’s new consumer head in March.

More on people moves here:

Read the original article on Business Insider

Taking stock of a remarkable year in asset and wealth management

For the wealth and asset management industries, this year was marked by widespread consolidation, fierce competition for financial advisor talent, and firms doubling down on their wealth businesses.

From Morgan Stanley’s E-Trade and Eaton Vance acquisitions to Franklin Templeton’s Legg Mason deal and LPL Financial and Macquarie’s bid for Waddell & Reed’s businesses, the asset and wealth management industries underwent drastic consolidation. 

Investment management merger and acquisition activity in the US was valued at some $28 billion this year, the highest overall deal value in the sector since $29 billion in 2000, according to data from Dealogic. 

Meanwhile JPMorgan, Goldman Sachs, and Citi all laid out new ambitions or executed on plans to grow their wealth businesses, and a flurry of financial advisor recruitment took the industry by storm.

Analysts and executives expect the wave of consolidation to carry into next year as sheer scale has become a necessity for fee-pressured investment managers looking for an edge.

Business Insider is taking you through our asset and wealth management coverage of 2020. 

Jamie Dimon, Jennifer Johnson, James Gorman

Deal activity is taking the asset and wealth management industries by storm. 

Credit Suisse names 4 firms as likely deal targets after a fresh wave of asset management M&A – and pinpoints possible buyers  

Execs from 4 asset managers like Franklin Templeton and Invesco give clues on how they’re prepping for a wave of M&A 

A new SPAC is on the hunt for a wealth-management deal. Here’s a look at the type of companies it’s targeting. 

Here’s our analysis of some of the biggest deals: 

Why Morgan Stanley’s $7 billion bid for a storied asset manager gives it a leg up on rivals and signals more deals to come

What BlackRock’s $1 billion bid for a trendy indexing business means for the money management industry  

Morgan Stanley, which has 15,000-plus financial advisers catering to the super-wealthy, is buying a discount broker known for its talking baby ads

JPMorgan US Wealth Management Chief Executive Officer Kristin Lemkau

Wealth and asset managers are rapidly evolving in a low- or no-fee world, where clients’ tastes are changing.

The asset manager of the future looks like a consultant. Here’s how firms like BlackRock, PIMCO, and Invesco are preparing for it.

Uber-rich investors hungry for growth have turned their sights on the private market. Here’s how wealth firms like Citi and UBS are transforming their businesses to meet those client demands.

Meet the 17 BlackRock power players carrying out CEO Larry Fink’s vision to turbocharge private equity and alternative investments growth

Goldman Sachs just revealed a new wealth brand at its first-ever investor day. It shows how the bank is trying to reshape its strategy – and image.

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

finance firms leave new york for florida 2x1

As the coronavirus pandemic ushered in widespread remote work, firms were forced to adjust.

Is Florida the new Wall Street?

Wealth managers can no longer take clients on splashy outings or events because of the pandemic. Here’s what they’re doing instead to keep their richest clients happy.

Wells Fargo is ditching a 750-person WeWork space, while Citi inked a deal with the flex-office giant far from a big city. Here’s a look at how financial firms are retooling their real estate.

Merrill Lynch has restarted hiring for its ultra-competitive 3,000-person financial advisor trainee program after hitting pause for months amid the pandemic

Read the original article on Business Insider