Finance

JPMorgan hunts online investing growth as new execs hired

JPMorgan Chase is hiring two executives to revamp its online investing product, which has lagged behind rival internet brokerages during a boom in individual investing.

The bank is bringing aboard executives who helped build investing platforms at rivals Bank of America and Goldman Sachs to take over its online wealth management and brokerage services, according to a memo reviewed by The Wall Street Journal.

Paul Vienick will lead online investing, according to the memo. He was previously a top executive at Charles Schwab’s TD Ameritrade, and he also held top jobs at Morgan Stanley and Bank of America’s Merrill Lynch unit.

Andrea Finan will run the bank’s self-directed investing business. She was previously at Goldman, where she helped launch Marcus Invest.

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JPMorgan is working on new services to launch early next year, including margin and securities-based lending, according to people familiar with the bank. Those offerings have become popular with investors who trade on online platforms like Robinhood.

The coronavirus pandemic supercharged the growth of online investing. Online brokerages added more than 20 million accounts in 2020, according to a report this month from financial consultant Aite-Novarica Group.

JPMorgan launched its online offering, You Invest, in 2018. While online is the fastest-growing part of the bank’s wealth business, it lags behind rivals in assets and accounts, the people familiar with the matter said.

Aite-Novarica included JPMorgan on a list of banks that “don’t field truly competitive offerings” in online wealth management. The bank’s affluent customer base represents an opportunity, but growth would require major investments, the report said.

READ How sports stars became traders in lockdown

JPMorgan combined some internal wealth management operations into a US wealth management division in late 2019. You Invest became JPMorgan Self-Directed Investing. The bank has largely focused on improving some of the online platform’s basic functions and feel.

“We don’t even think it’s a very good product yet,” chief executive Jamie Dimon said in June. “So, we’re driving that thing.”

Write to David Benoit at [email protected]

This article appeared on Dow Jones Newswires

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