U.S. banking giant JPMorgan Chase will help poor American communities. The largest US bank set to invest $25 million in FinTech startups that help low-income Americans be more financially healthy.
An American banking giant JPMorgan Chase & Co has decided to help poor American communities. With this purpose, the largest US bank will invest $25 million in FinTech start-ups that help Americans with a low level of income be more financially healthy.
According to Karen Keogh, JPMorgan’s head of global philanthropy, this money will be spent on the development of products that could help people in communities like Harlem:
“We’ve long believed that fintech coupled with in-person coaching and behavioral nudging is critical to financial health. This is how economies are built: strong, vibrant healthy households.”
As JPMorgan chief executive Jamie Dimon stated, this initiative is a responsibility to all stakeholders, not just the investors. The giant believes that the move can also increase the number of customers: supporting finance apps and having meeting spaces for community groups in its branches could result in the growth of trust and clients’ loyalty.
JPMorgan Takes On New Banking Trend
J.P. Morgan Chase & Co. is the largest bank in the United States and is ranked by S&P Global as the sixth-largest bank in the world by total assets as of 2018, to the amount of $2.534 trillion. It is the world’s most valuable bank by market capitalization and one of America’s Big Four banks, along with Bank of America, Citigroup, and Wells Fargo.
In 2017, the bank became one of the largest asset management companies in the world with US$2.789 trillion in assets under management and US$30 trillion in assets under custody. At US$47.7 billion in assets under management, the hedge fund unit of JPMorgan Chase is the fourth largest hedge fund in the United States.
As we reported earlier, JPMorgan Chase may win the lead advisory role for the initial public offering (IPO) of the world’s most profitable corporation – Saudi Aramco, defeating rivals for the plum assignment. The giant has high chances, as its major competitor Morgan Stanley suffered a lot from failed Uber IPO.
Recently, JPMorgan also renovated its Harlem branch on West 125th Street and designed it with several meeting rooms that can be reserved for free by people and businesses in the community. Currently, the Harlem branch is passed by more than 1 million pedestrians weekly.
Such a decision is a new trend started by other banks like Capital One, which converted several of its branches into cafes in a bid to drive more people into the bank’s costly brick and mortar locations. JPMorgan is also planning to open five more branches with the next one being in Los Angeles.