Once behind in online investing, JPMorgan Chase now positions itself as a leader. On Friday, the bank will launch new tools enabling investors to research and buy bonds and brokered certificates of deposit directly through its mobile app, CNBC reports.
Investors can customize screens and compare bond yields on the same app or web portal used for account management, JPMorgan executives say. This initiative aims to attract investors who trade occasionally.
“Our goal was to make buying fixed income extremely simple,” said Paul Vienick, head of online investing at JPMorgan Wealth Management. “We applied the same ease of buying stocks and ETFs to fixed income.”
Though JPMorgan is the largest U.S. bank by assets, its online brokerage remains small compared to giants like Charles Schwab, Fidelity, and E-Trade. The bank recently surpassed \$100 billion in assets under management, still far behind competitors with decades of investor growth and acquisitions.
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‘Driving that thing’
In 2018, JPMorgan launched a free trading service called “You Invest” to capture a share of the trillions held by self-directed investors. The bank heavily promoted the brand, including at the U.S. Open tennis tournament.
By 2021, JPMorgan realized the brand wasn’t resonating and rebranded the platform as the Self-Directed Investing platform. At that time, managing around \$55 billion in assets, CEO Jamie Dimon candidly admitted, “We don’t even think it’s a very good product yet,” pledging to improve it.
To accelerate the turnaround, JPMorgan hired Paul Vienick, an experienced executive from TD Ameritrade, Morgan Stanley, and Bank of America, in late 2021 to lead the overhaul. Vienick acknowledged the bank needed to catch up in wealth management.
JPMorgan also aims to grow assets under management for wealthy clients through financial advisors, boosted by its 2023 acquisition of First Republic. Although JPMorgan serves half of the country’s 19 million affluent households, it controls only about 10% of their investment assets.
Today, strong online tools are essential alongside human advisors, who traditionally generate more revenue by offering personalized services. Vienick notes that roughly half of clients using financial advisors also invest independently using digital platforms.
Next stop: $1 trillion?
JPMorgan now targets more active investors who research and trade stocks monthly and prefer buying bonds directly instead of through mutual funds. To attract customers, it offers up to \$700 for transferring funds to its self-directed platform.
The bank plans to enable after-hours stock trading soon, enhancing flexibility for users. This strategy encourages clients already banking with JPMorgan or using its credit cards to consolidate their finances within the firm. This consolidation allows instant money transfers and a unified financial overview.
Leveraging its extensive branch network, strong balance sheet, and Jamie Dimon’s leadership, JPMorgan aims to become a major online brokerage player. Paul Vienick remains confident the self-directed platform can grow into a trillion-dollar business by meeting client demands through persistent effort.
Frequently Asked Questions
What new features has JPMorgan Chase added to its mobile app?
JPMorgan Chase recently introduced bond trading and access to brokered certificates of deposit on its mobile app, allowing users to research and purchase fixed-income products directly.
Why is JPMorgan Chase focusing on bond trading in its app?
The bank aims to attract more active investors who prefer trading bonds directly, making fixed-income investing simpler and more accessible through its digital platform.
How does JPMorgan’s mobile app improve the investing experience?
Users can customize screens, compare bond yields, and manage accounts seamlessly on the same app, enhancing convenience and control over investments.
What is JPMorgan Chase’s asset goal with these app enhancements?
JPMorgan targets growing its assets under management to $1 trillion by expanding its digital brokerage services and attracting a wider investor base.
How does this update position JPMorgan Chase against competitors?
By integrating bond trading and improving user experience, JPMorgan competes more effectively with established online brokerages like Charles Schwab and Fidelity.
Who can benefit most from the new bond trading feature?
Both occasional and active investors who want easy access to fixed-income products without intermediaries will find the app’s new features especially useful.
Conclusion
JPMorgan Chase’s addition of bond trading to its mobile app marks a strategic move to capture a larger share of the growing digital investment market. By simplifying access to fixed-income products and enhancing user experience, the bank aims to attract more investors and accelerate its goal of reaching $1 trillion in assets under management. This upgrade strengthens JPMorgan’s position against major brokerage competitors and reflects its commitment to meeting evolving investor needs through innovative technology.