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List of JPMorgan Acquisitions, Fintech Investments Since 2020

 2 years ago
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List of JPMorgan Acquisitions, Fintech Investments Since 2020

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JPMorgan just announced plans to buy a fintech to help it compete with Block and Stripe. Here's a rundown of 15 deals and investments the bank recently made that are focused on tech.

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JPMorgan Chase CEO Jamie Dimon with Stripe, PayPal, and Square logos looming over his head on a red background

"I think we have huge competition in banking and shadow banking, fintech, and big tech," JPMorgan CEO Jamie Dimon said last July. Stripe; PayPal; Square; Chip Somodevilla/Getty Images; Samantha Lee/Insider

  • JPMorgan has made at least 15 fintech and consumer acquisitions or investments since 2020.
  • It is the largest US bank by assets, but it is looking to expand wealth and asset management. 
  • Insider has tracked key deals JPMorgan has made since 2020 reflecting that strategy.

JPMorgan has made a wide array of recent fintech and consumer-focused acquisitions and investments as it looks to counter what Chief Executive Jamie Dimon has called "very tough, brutal competition" from startups.

"I think we are now facing a whole generation of newer, tougher, faster competitors who, if they don't ride the rails of JPMorgan, they can ride the rails of someone else," Dimon said in January 2021 during a quarterly earnings call, a frank acknowledgment that America's largest bank by assets is as worried about maintaining market share as anyone.

"I expect to win, so help me, God," he added.

Dimon reiterated that point during the bank's fourth-quarter earnings call this January, adding that spending wouldn't be a barrier in its quest to take on upstarts. JPMorgan faces competition from traditional financial names like Citadel, from payments giants like PayPal and Stripe, and from fintechs, Dimon said on the call.

"It's a lot of competition, and we intend to win, and sometimes that means you got to spend a few bucks," he added.

The bank has made at least 15 publicly announced acquisitions or investments since 2020, according to an analysis by Insider.

This March, JPMorgan said that it would buy Ireland-based Global Shares, a private-equity-backed provider of stock compensation plan software, for an undisclosed amount.  

In June, JPMorgan Growth Equity Partners announced an investment in Codat's $100 million Series C round. Based in New York, Codat constructs the APIs, or data pipes, businesses use to connect to fintechs and banks. 

And this September, JPMorgan said it had signed an agreement to acquire Renovite Technologies, a cloud-based payments tech startup based in California. 

Banking and investing divisions represent big business for JPMorgan

The bank's consumer and community banking arm brought in more than $12.2 billion in net revenue in the first quarter of 2022, roughly 40% of the bank's overall total, according to earnings filings. Asset and wealth management was responsible for some $4.3 billion in revenue. 

The bank is also preparing to beef up its services to private companies through a new fintech unit, according to a news report this February. 

JPMorgan has been hiring programmers and creating products for a new business aimed at serving startups and investors, CNBC reported, citing people with knowledge of the matter. Head of digital private markets Michael Elanjian is leading the project, CNBC reported.

He has been instrumental in the way JPMorgan works with private companies. Elanjian told Insider in 2020 that the bank was implementing a new program to more quickly evaluate fintech startups it is looking to do business with, whether a customer, investment, or other relationship.

Insider is tracking JPMorgan's new consumer- and fintech-focused acquisitions and stakes.


Frank caters to college students and their parents. Associated Press

Frank 

Deal details: Acquisition announced in September 2021. Terms of the deal were not disclosed.

What it does: Frank is a college financial-planning service offering online tools like an application portal for students' federal financial aid and access to scholarships.

Division within JPMorgan: Consumer and community banking

Executives in charge of division: Marianne Lake and Jennifer Piepszak, co-chiefs of consumer and community banking

How it fits in: The Frank deal marks an effort to reach younger customers at Chase, where 15% of total checking accounts are held by students under 24, according to figures from the company. 


The Infatuation  

Deal details: Acquisition announced in September 2021. Terms of the deal were not disclosed. 

What it does: A restaurant-reviews website, The Infatuation owns Zagat and offers dining guides for restaurants in cities across the US. 

Division within JPMorgan: Consumer and community banking

Executives in charge of division: Marianne Lake and Jennifer Piepszak, co-chiefs of consumer and community banking

How it fits in: JPMorgan's credit-card portfolio, one of the largest in the country, brought in $1.2 billion in revenue for Chase in the second quarter. The Infatuation will likely slot in alongside Chase's premium Sapphire credit card offerings, supplementing existing rewards and loyalty perks. 


Earlier this month, JPMorgan said it would take a majority stake in Volkswagen's payments business. Volkswagen

Volkswagen Payments 

Deal details: JPMorgan acquired a majority stake of close to 75% in Volkswagen Financial Services in September 2021. Terms of the deal were not disclosed. 

What it does: Volkswagen Financial Services is a digital payments service for the auto manufacturer's customers.

Division within JPMorgan: Corporate and investment bank

Executive in charge: Takis Georgakopoulos, head of wholesale payments for its corporate and investment bank

How it fits in: JPMorgan plans to leverage Volkswagen's payments capabilities across the automotive sector, dovetailing with the bank's wholesale-payments business that includes corporate treasury, trade finance, and card and merchant service businesses. 


Nutmeg 

Deal details: JPMorgan announced the acquisition in June 2021, paying approximately $1 billion. 

What it does: Nutmeg is a UK-based digital wealth manager that currently counts around 140,000 customers and $3.5 billion in assets under management. 

Division within JPMorgan: International consumer 

Executive in charge of division: Sanoke Viswanathan, CEO of international consumer

How it fits in: JPMorgan is integrating Nutmeg as part of its UK digital bank set to launch in September. JPMorgan has looked to improve its digital wealth capabilities as it faces competition from rival banks' consumer-investing tools and standalone robo-advisors. In September, the bank said it hired two tech-focused executives from Goldman Sachs and TD Ameritrade in the US to help bulk up its online investing tools, according to a memo Insider viewed. 


OpenInvest

Deal details: Acquisition announced in June 2021. Terms of the deal were not disclosed.

What it does: OpenInvest, founded in 2015 and backed by investors including Andreessen Horowitz and QED, helps financial advisors and clients customize values-based investments and report on them. 

Division within JPMorgan: Asset and wealth management

Executive in charge of division: Mary Callahan Erdoes, CEO of asset and wealth management

How it fits in: JPMorgan is integrating OpenInvest into client offerings for its private bank and wealth management. The bank's wealth management unit is looking to set itself apart at a highly competitive moment, while investors' interest for sustainable and values-based investing has risen significantly in recent years. 


Deal details: Acquired 40% stake in June 2021. Terms of the deal were not disclosed.

What it does: Brazilian digital bank C6, which was launched in 2019, has some 7 million customers and offers checking and savings accounts, debit and credit cards, and investing services. 

Division within JPMorgan: International consumer

Executive in charge of division: Sanoke Viswanathan, CEO of international consumer 

How it fits in: C6 offers a way for JPMorgan to bulk up its presence in the Brazilian banking market, where challenger bank Nubank has amassed 34 million customers as of January. Meanwhile, JPMorgan has looked to improve its digital investment offerings.


New England Patriots owner Robert Kraft, left, and former Patriots star Tom Brady. Jim Rogash/Getty Images

Kraft Analytics Group 

Deal details: JPMorgan took a minority stake in Kraft Analytics Group in June 2021, and terms were not disclosed.

What it does: The company, owned by New England Patriots owner Robert Kraft, provides analytics and consulting services in the sports and entertainment industry. 

Division within JPMorgan: Asset and wealth management

Executive in charge of division: Mary Callahan Erdoes, CEO of asset and wealth management

How it fits in: JPMorgan can use data from Kraft Analytics Group to help advise wealthy clients in sports and entertainment. The bank has made a significant push to grow its wealth management business, and the investment could serve as a way to set itself apart from competitors. 


cxLoyalty 

Deal details: JPMorgan said it would buy cxLoyalty's global loyalty division in December 2020. Terms of the deal were not disclosed. 

What it does: cxLoyalty builds the technology behind rewards programs that other companies in financial services, hospitality, and other industries use for their customers.

Division within JPMorgan: Consumer and community banking

Executives in charge of division: Marianne Lake and Jennifer Piepszak, co-chiefs of consumer and community banking

How it fits in: JPMorgan meshed part of cxLoyalty's business into its vast credit-card rewards features as a way to ramp up the kinds of special offers it can give customers, like points for travel. 


Deal details: JPMorgan announced the deal in December 2020. Terms of the deal were not disclosed. The bank said 55ip would retain its branding and operate as a separate unit. 

What it does: Software that aims to help financial advisors' clients lower their tax bills.

Division within JPMorgan: Asset and wealth management

Executive in charge of division: Mary Callahan Erdoes, CEO of asset and wealth management

How it fits in: Financial advisors are increasingly looking for ways to offer tax-efficient strategies and other personalized approaches to handling clients' portfolios.


Proxymity 

Deal details: JPMorgan, Citi, HSBC, and other firms together invested $20.5 million in Proxymity in May 2020.

What it does: An investor communications service that offers shareholders real-time, digital proxy voting.

Division within JPMorgan: Corporate and investment bank's custody and funds services division

Executive in charge of division: Tim Fitzgerald, global head of custody and funds services in CIB

How it fits in: Originally developed in Citi's institutional clients group and spun off last year to become an independent unit, Proxymity is taking on an increasingly common issue: Public companies can't reach their shareholders to get them to vote on corporate events. The current proxy system — where information is still often mailed — hasn't been able to keep pace with a boom in retail trading. JPMorgan is now an investor in one solution to the problem that's been built by industry vets.


Viva Wallet 

Deal details: JPMorgan said it would acquire 49% of Viva Wallet in January 2022, pending regulatory approval. Terms of the deal were not disclosed.

What it does: Athens, Greece-based Viva Wallet offers cloud-based payments and banking services for small and medium businesses across 23 countries in Europe. The company's products include things like virtual debit-card issuance and bill and expense management tools. 

Division within JPMorgan: Corporate and investment bank

Executive in charge: Takis Georgakopoulos, head of wholesale payments for its corporate and investment bank

How it fits in: In a press release accompanying the deal announcement, Georgakopoulos called European payments "a big focus area for added growth for J.P. Morgan Payments in the future." The payments division at JPMorgan encompasses everything from corporate treasury to card and merchant services, and the stake in Viva Wallet will give the bank a leg-up in competing in Europe. 


Getty Images stock photo

TRM Labs

Deal details: JPMorgan announced a strategic investment in TRM Labs in February 2022. Terms of the deal were not disclosed.

What it does: TRM Labs, based in San Francisco, is a startup that offers compliance, risk-management, and anti-fraud tools for crypto businesses, financial firms, and regulators. The startup's tech works across blockchains to track flows of crypto funds. For financial institutions like JPMorgan, these services include the ability to screen for risky crypto wallets (like those associated with sanctioned entities), and monitor in real time potentially suspicious crypto transactions. 

Division within JPMorgan: Onyx, JPMorgan's wholesale payments blockchain network

Executive in charge: Umar Farooq, CEO of Onyx

How it fits in: The Onyx team at JPMorgan has made headlines in 2022, including with the February launch of an Onyx-branded "lounge" in the metaverse. In a statement accompanying the TRM Labs investment, Onyx CEO Umar Farooq said, "We've spent the last six years exploring the possibilities and applicability of blockchain technology – leading infrastructure companies like TRM will help usher in the future of secure blockchain and crypto use cases." TRM Labs' tech is a likely draw for financial institutions like JPMorgan, which are actively seeking out new revenue opportunities in crypto but are wary of being burned by compliance and regulatory issues. 


Global Shares

Deal details: JPMorgan announced on March 15 it would acquire Global Shares in a deal the companies expect to close in the second half of this year. Terms of the deal were not disclosed.

What it does: Global Shares, headquartered in Cork, Ireland, makes software to help companies manage their employees' stock compensation plans. The company was founded in 2005 and has some 600 corporate clients, "from early-stage start-ups to mature multinational public corporations," and about 600 employees, according to a press release announcing the deal. Motive Partners, a private-equity firm that is backed by Apollo and focuses on fintech companies, had taken a 40% stake in Global Shares in 2018. 

Division within JPMorgan: Asset and wealth management 

Executive in charge: Mary Callahan Erdoes, CEO of asset and wealth management 

How it fits in: In a move reminiscent of Morgan Stanley's 2019 acquisition of the stock plan administration provider Solium Capital, now branded as Shareworks, JPMorgan is buying an avenue to reach clients who are starting to build wealth and may one day need the guidance of a JPMorgan financial advisor or private banker. The bank in recent years has sought out ways to bolster its wealth management business.


Pete Lord, CEO and cofounder of Codat Codat

Codat

Deal details: JPMorgan Growth Equity, a division of the bank's asset management arm, led Codat's $100 million Series C round announced this June. The fundraising valued Codat at $825 million, Bloomberg reported, and also saw participation from Shopify, Canapi Ventures, and Plaid.

What it does: Codat builds the APIs, or application programming interfaces, used to connect small businesses with fintechs and banks. As one example, Experian has tapped Codat to access its own small business customers' data for faster lending decision-making. Founded in 2017, the startup has rapidly grown and now counts 200 clients, 250 employees, and some $160 million raised to date.

"The challenge we were solving is that connectivity challenge, the integration problem," Codat Cofounder and CEO Peter Lord told Insider last year.

Division within JPMorgan: Asset and wealth management 

Executive in charge: Mary Callahan Erdoes, CEO of asset and wealth management 

How it fits in: JPMorgan has now joined the likes of Tiger Global, PayPal, and Amex in backing Codat. In a statement accompanying the Series C round, JPMorgan Partner Patrick McGoldrick said that the bank's "extensive small business customer base" would align with Codat's business model of "connecting and standardizing data." McGoldrick is also joining the board of Codat. 


Christian Petersen-Clausen/Getty Images

Renovite Technologies

Deal details: JPMorgan announced on September 12 it plans to acquire Renovite. Terms of the deal were not disclosed.

What it does: Renovite offers six cloud-native and cloud-agnostic payments tech products, including payments switching, and issuing tools, JPMorgan said. The company, founded in 2015, is based in California, has operations in the US, UK, and India, and is led by CEO and Founder Viren Ran. 

Division within JPMorgan: JPMorgan Payments

Executive in charge: Max Neukirchen, global head of payments & commerce solutions, and Mike Blandina, global head of payments technology. 

How it fits in: The pending Renovite acquisition marks JPMorgan's third major payments play in roughly a year, after inking a majority stake in Volkswagen Payments last September and grabbing a large share of Viva Wallet this January. JPMorgan is already a massive player in global payments, but the Renovite deal comes as the bank looks to better compete in a space crowded with fintech incumbents like Block and Stripe. JPMorgan began working with Renovite last year. In a press release accompanying the announcement, Neukirchen said the aquistion, "will help us achieve our goal to develop the next-generation payments processing platform globally." 


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