JPMorgan Chase ought to undoubtedly be much less afraid of fintech
Jamie Dimon, JP Morgan Chase CEO
David A. Grogan | CNBC
Jamie Dimon, CEO of JPMorgan Chase, has watched a new generation of fintech gamblers led by PayPal, Square, and tech giants around the world have exponentially increased users and market value.
His $ 3.4 trillion message to the management team of his bank goliath: Be scared.
“Absolutely, we should be less afraid of it,” said Dimon on Friday in a conference call with analysts. “We have a lot of resources, a lot of very smart people. We just have to get faster, better, faster. … If you look at what we did, you would say we did some good work, but other people did good job too. “
Dimon’s blunt assessment was in response to questions from analysts, including Wells Fargo’s Mike Mayo, who pointed out that fintech players have “knocked down” traditional banks with rich, tech-savvy ratings in recent years.
Dimon said he sent his MPs a list of global competitors, and PayPal, Square, Stripe, Ant Financial, and US tech giants like Amazon, Apple and Google are names the bank needs to watch out for. Competitors are also in many cases clients of JPMorgan’s commercial and investment banking, he added.
The competition in the world of payments will be particularly fierce, he said: “I expect very, very fierce and brutal competition in the next 10 years,” said Dimon. “I expect to win, so help me God.”
Dimon added that in some cases the new players were “examples of unfair competition” that the bank would take action against at some point. It included players who benefit from larger debit card revenues for small banks and companies, which Dimon was accused of not taking precautions against money laundering.
He specifically called Plaid, the payments start-up whose takeover by Visa had recently collapsed, and said, “People who abuse the data given to them, like Plaid.”
Zach Perret, CEO of Plaid, declined to respond directly to the allegation during an interview with CNBC’s David Faber, adding that Plaid is spending time with the bank on a partnership.
When contacted for further comments, a Plaid spokeswoman said the company was “focused on making sure people have access to their own financial information so that they can securely share it with permission to use the fintech apps they choose . “
She added that “privacy and security are central to everything we do, including the data sharing agreements we have with JPMorgan Chase among many other banks.”
– CNBC’s Dawn Giel contributed to the report.