JPMorgan plots ‘astonishing’ $12bn tech spend to beat fintechs

JPMorgan Chase, Wall Street’s largest lender, has said it wants to invest more in technology and talent to strengthen its competitiveness, which is causing concern for US banks in 2022.

As it said reputation profits last year, JPMorgan surprised experts by predicting that revenue would increase by 8 percent this year to about $ 77bn, meaning that it would probably miss out on huge profits in 2022, and possibly in 2023.

Among the items that have been raised are high-paying, with an additional $ 2.5bn set aside to provide compensation and travel expenses. But JPMorgan also said it wants to increase new revenue this year by $ 3.5bn, or 30 percent, to about $ 15bn. Strategic spending in 2022 will hit $ 12bn in 2022, it said.

“Global technology costs about $ 12bn, a staggering number,” said James Shanahan, a researcher by Edward Jones. “This is probably wasting a lot of fintech money around the world trying to confuse them.”

JPMorgan shares, which have almost doubled the epidemic, fell by 6.15 percent on Friday. This also affected the prices of other major banks that will report their findings next week, while Morgan Stanley fell 3.6 percent, Goldman Sachs 2.5 percent and Bank of America 1.7 percent.

Jamie Dimon, 65, who has made a name for himself at JPMorgan as a senior executive since 2005, told experts that the bank should “spend less money” to defeat its competitors.

However, the spending plan urged Mike Mayo, a banking expert at Wells Fargo who had recommended JPMorgan to clients over the past seven years, to reduce the bank’s size, without any downtime.

“Even Jamie Dimon, one of the best banks of his generation, does not get a free ticket to increase interest rates by half over three years without giving much granularity of expected benefits,” Mayo said.

JPMorgan is expanding its operations as more and more money-making operations in the bank begin to decline. Advertisers hope that higher interest rates – as well as higher debt rates – could help pay off, but instead many of the profits are now going to pay off.

Big money reflects the pressure on banks to compete with financial technology companies such as Stripe processor, Affirm regional lender and challenger bank Chime.

Jeremy Barnum, chief financial officer at JPMorgan, said the bank is a “quick moment” to invest. “One of the reasons for this is the high level of competition out there in the market,” Barnum told reporters, “especially from those who entered the literature.”

JPMorgan is investing in new data center cloud and cloud computing products as well as expanding new markets such as the UK and commodity prices.

Officials say investing in technology these days makes for a cheaper investment. But it can take years to figure out what is being saved and the lack of details of the things that frustrate investors.

“You, as a shareholder, as a foreigner, can’t tell the difference between the money you spend on money and the money you spend in the past until three years later. So you just have to trust,” said Chris Kotowski, a banking expert at Oppenheimer & Co.

After a quarterly paycheck to Citigroup, which has been spending huge sums of money to upgrade its technology under the pressure of bankruptcy, chief financial officer Mark Mason called technology “the most important line” in banking transactions, without giving. accurate predictions.

The bank’s interest rate fell 1.25 percent on Friday.

Meanwhile, Wells Fargo shares have risen 2 percent after the bank announced a 12 percent increase in the fourth quarter as it seeks to recover from fraudulent accounting. The bank said its spending could be lower compared to 2021 as it plans to raise $ 1.2bn in finance and compensation.

Original Article reposted fromSource link

Disclaimer: The website autopost contents from credible news sources and we are not the original creators. If we Have added some content that belongs to you or your organization by mistake, We are sorry for that. We apologize for that and assure you that this won’t be repeated in future. If you are the rightful owner of the content used in our Website, please mail us with your Name, Organization Name, Contact Details, Copyright infringing URL and Copyright Proof (URL or Legal Document) aT spacksdigital @

I assure you that, I will remove the infringing content Within 48 Hours.

Leave a Reply

Your email address will not be published. Required fields are marked *


Manchester United Transfer News Roundup: Cristiano Ronaldo criticised for picking on teammates; Red Devils initiate negotiations for RB Leipzig star, and more – 17 January 2022

Manchester United they have to deal with the frustration of their 2-2 game at Aston Villa as they prepare to meet Brentford Wednesday. The Red Devils need all three points against the Bees to maintain their high hopes in the Premier League. He is currently in seventh place, trailing fourth-placed West Ham with six points, […]

Read More

Sara Evans’ Husband Just Got Arrested for Trying to Run Country Singer Over with His Car

Jay Barker, a former NFL player and radio presenter known to have had local singer Sara Evans, was arrested on Saturday and charged with assault with intent to cause grievous bodily harm. Is it his fault? Trying to chase Evans by car. According to a report detained at Davidson County Jail, Barker was detained on […]

Read More

Star-studded Rams need championship ending to truly win Los Angeles' praise

7:00 AM AND Lindsey ThiryESPN price Close He covered the Rams for two years in the Los Angeles Times In the past he covered the Falcons He covered the NBA as well as college football and basketball INGLEWOOD, Calif. – In the gut of SoFi Stadium, Los Angeles Rams coach Sean McVay came down the […]

Read More