JPMorgan Chase is clearly gearing up to invest big on its mobile investment platform. They plan to roll out other tools that help investors research and buy bonds — including brokered certificates of deposit (CDs) — directly through their app. This improvement is a huge step forward for the bank. As it expands into asset management, it’s betting that its massive branch network and deep balance sheet will attract a new class of client looking for fixed-income products.
Under CEO Jamie Dimon’s guidance, JPMorgan Chase has completely changed its focus on the online investing space. Today, it is known as one of the titans of the digital finance revolution. The bank has since further cemented its place, becoming the largest in the United States by assets. It recently crossed the awe-inspiring threshold of $100 billion in assets under management, demonstrating its rapidly-growing clout in the world of finance.
In the past, JPMorgan Chase limited customers to purchasing only stocks and exchange-traded funds (ETFs) through its platform. Now, the bank is taking those winning principles honed on the trading floor for equities and utilizing them to the fixed-income space. Paul Vienick, head of online investing at JPMorgan Chase’s wealth management subsidiary, sees the need for a more straightforward fixed-income purchasing experience. Tom knows that improving the client experience is key to making this a reality.
“Our goal was to create an experience that makes it extremely simple for clients that want to buy fixed income.” – Paul Vienick
The new features are designed to provide a seamless transition for investors who may have previously found bond purchasing complex or inaccessible. By making these changes, JPMorgan Chase is putting its clients in control. Now, they are able to take advantage of the same frictionless trading for stocks and ETFs.
Even though JPMorgan Chase has made the most progress in recent years, it has been beating the digital path. In 2018, the megabank countered with its own free-trading service, dubbed “You Invest.” This program has attracted a huge army of impact-minded do-it-yourself investors. The Department of Transportation JPMorgan Chase is excited to improve environmental justice outreach and engagement. To accomplish this, they’re rewarding people up to $700 to move their money onto their self-directed platform.
Vienick is especially excited about the potential for self-directed business beyond traditional wealth management core.
“I have every belief the self-directed business outside of core wealth management can be a trillion-dollar business.” – Paul Vienick
This is indicative of the bank’s confidence in the long-term future of its new mobile app and digital investment capabilities. As an example, Vienick said they have happily made it easy to buy stocks and ETFs. Now, they’ll bring the same approach to the fixed-income arena.
“We’ve taken that exact thought process for the simplicity of [buying] stocks and ETFs and moved that into the fixed-income space.” – Paul Vienick
The release of these bond trading tools is a smart tactical move. Its intent is to get a bigger slice of the booming online investment market. In addition, consumer preferences are moving to digital destinations. In order to remain competitive, JPMorgan Chase wants to make sure that they’re consistently improving their product offerings.
Despite their recent successes, Dimon is the first to recognize that more can be done within their investment products.
“We don’t even think it’s a very good product yet. So we’re driving that thing.” – Jamie Dimon
As the largest U.S. bank, JPMorgan Chase is always on the leading edge of innovation and industry expansion. This latest drive reinforces its reputation as a leader in several financial categories. For the bank, accessibility is key in providing non-conventional investment tools. This commitment is an indicator of a wider shift in finance that values convenience and accessibility above all else.