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 Corp.
Goldman Sachs Group Inc.
to take over its online wealth management and brokerage services, according to a memo reviewed by The Wall Street Journal.
will lead online investing, according to the memo. He was previously a top executive at Charles Schwab Corp.’s TD Ameritrade, and he also held top jobs at
and Bank of America’s Merrill Lynch unit.
will run the bank’s self-directed investing business. She was previously at Goldman, where she helped launch Marcus Invest.
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 Markets Inc.
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.
JPMorgan combined some internal wealth management operations into a U.S. 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
said in June. “So, we’re driving that thing.”
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JPMorgan Chases the Online Investing Boom With Senior Hires Source link JPMorgan Chases the Online Investing Boom With Senior Hires