Mobile App Adds Bond Trading Capability

Introduction to JPMorgan Chase’s Online Investing Platform

JPMorgan Chase, the largest U.S. bank by assets, is set to unveil new tools that allow investors to research and purchase bonds and brokered certificates of deposit through its mobile app. The move is part of a concerted effort to beef up the bank’s credentials among investors who trade a few times a month. According to Paul Vienick, head of online investing at JPMorgan’s wealth management arm, "Our goal was to create an experience that makes it extremely simple for clients that want to buy fixed income."

History of JPMorgan Chase’s Online Investing Efforts

JPMorgan, a leader across most major categories of finance, has only recently crossed $100 billion in assets under management. This pales in comparison to online investing giants such as Charles Schwab, Fidelity, or E-Trade, which have had decades to accumulate investors and acquire competing platforms. The bank first attempted to snare more of the trillions of dollars that self-directed investors hold by launching a free trading service in 2018, called "You Invest." However, by 2021, JPMorgan saw that the brand wasn’t connecting the way it had hoped and pivoted to simply calling it the Self-Directed Investing platform.

Improvements and Upgrades to the Platform

CEO Jamie Dimon called out the firm’s product in his usual blunt way, stating, "We don’t even think it’s a very good product yet. So we’re driving that thing." Part of JPMorgan’s pivot was to hire Vienick, a veteran of TD Ameritrade, Morgan Stanley, and Bank of America, in October 2021 to overhaul the bank’s efforts. Vienick said, "There was a recognition that in wealth management, we have some catching up to do overall." The bank is now working on providing users the ability to execute after-hours stock trades and is looking to target more engaged investors.

Target Market and Goals

The bank is looking to target more engaged investors, those who research and buy stocks a few times per month and who are more inclined to purchase bonds directly rather than owning them through mutual funds. It currently offers customers up to $700 for moving funds to its self-directed platform. The bank’s advantages, including its vast branch network, deep balance sheet, and reputation under Dimon, have Vienick confident that JPMorgan will eventually join the other large players among online brokerages. Vienick said, "I have every belief the self-directed business outside of core wealth management can be a trillion-dollar business."

Conclusion

JPMorgan Chase’s efforts to improve its online investing platform are a significant step towards becoming a leader in the industry. With the addition of new tools and features, the bank is poised to attract more investors and increase its assets under management. As Vienick stated, "It’s going to take hard work. It’s going to mean we’re delivering what clients are asking for."

FAQs

Q: What is JPMorgan Chase’s new online investing platform?
A: JPMorgan Chase is set to unveil new tools that allow investors to research and purchase bonds and brokered certificates of deposit through its mobile app.
Q: What is the goal of JPMorgan Chase’s online investing platform?
A: The goal is to create an experience that makes it extremely simple for clients to buy fixed income and to become a leader in the online investing industry.
Q: How much in assets under management does JPMorgan Chase currently have?
A: JPMorgan Chase has recently crossed $100 billion in assets under management.
Q: What is the target market for JPMorgan Chase’s online investing platform?
A: The bank is looking to target more engaged investors, those who research and buy stocks a few times per month and who are more inclined to purchase bonds directly.
Q: What is the ultimate goal for JPMorgan Chase’s self-directed business?
A: Vienick believes that the self-directed business outside of core wealth management can be a trillion-dollar business.