| Pub. Date | : Sept' 2020 |
|---|---|
| Product Name | : The IUP Journal of Case Folio |
| Product Type | : Article |
| Product Code | : IJCF30920 |
| Author Name | : Anil Anirudhan, Sanjib Dutta |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 14 |
The case discusses the digital initiatives taken by JPMorgan Chase (JPMC). To stay relevant amidst changing customer expectations and the increasing trend of digital banking, JPMC employed a team of 50,000 technologists worldwide and had a technology budget of $11.5 bn in 2019. The initiative to have digital technologies play a pivotal role in banking operations was taken up in 2006 under the leadership of Jamie Dimon, CEO of JPMC. The case deals with the growth of JPMC over the years and its digital initiatives, which included the "mobile first, digital everything" strategy. The use of new technologies such as Big Data, Artificial Intelligence, Cloud Computing, Mobile and Electronic Payments, Machine Learning, Blockchain, Robotics and Cyber Security by JPMC is discussed in detail. JPMC had tied up with several fintech companies to develop new technologies for its banking operations and to preempt competition in future, both from banking and non-banking entities. Even though JPMC had emerged as a disrupter in the banking industry with its innovative technologies, it faced an ever-growing threat from banking organizations aligned with technological companies. It therefore sought to take the competition head on with the use of digital technology.
While other tech companies have a narrower scope of things they do very well, what differentiates JPMorgan Chase is our ability to invest $11 bn in a broad number of technologies simultaneously. Our size and scale are simply unparalleled.1
- Larry Feinsmith, MD and Head of Global Tech Strategy, JPMorgan Chase
The business case for digital everything is compelling. It's a generational shift. Think streaming films versus DVDs. Banking is no exception, and as such, they (millennials) are choosing a provider based upon their digital capabilities.2
- Marianne Lake, Former Chief Financial Officer, JPMorgan Chase
I have always told people: "You have to use tech to do a better job for your client." That's a sine qua non. So, in our reviews-and this has been true my whole life-we ask: "What are you building, what are other people building, how do you make it better, faster, quicker, cheaper?" And tech is the big part of that.3
- Jamie Dimon, Chief Executive Officer, JPMorgan Chase
In early 2019, the career website of JPMorgan Chase & Co. (JPMC), the largest bank in the US4 and the third largest in the world,5 had 2102 open technology jobs (27%), the highest among all the categories, followed by openings in core banking areas such as Branch Banking (1496, 19%), Relationship Management (857, 11%) and Accounting/ Finance/Audit/Risk (731, 9%) (Refer Exhibit I for details of open positions in all categories). The fact that the number of openings for technologists was the highest was no surprise, given the bank's relentless focus on technology over the years. In 2018, the bank had a team of 50,000 technologists worldwide (around two-third of them software engineers), which it claimed was more than the number of technologists Facebook and Twitter together employed.