5 Acquisitions That Will Help JPMorgan Chase Grow and Better Compete
JPMorgan Chase (NYSE: JPM), America's largest bank by assets, went on an absolute shopping spree in June, announcing four acquisitions, mostly of fintech and digital banking companies. It also announced another fintech acquisition in December of last year, giving the bank five purchases in a seven-month period. JPMorgan's CEO Jamie Dimon has been pretty vocal about his desire to purchase more companies in the asset management space, which many believe is ripe for consolidation, as well bolt-on fintech acquisitions. Here are the five acquisitions JPMorgan made and how they can help the company grow and better compete.
Several months after confirming that it would launch a digital consumer bank in the United Kingdom, JPMorgan announced that it plans to purchase the popular U.K. robo advisor Nutmeg Saving and Investment Limited. Nutmeg provides individual savings accounts (ISAs), junior ISAs, lifetime ISAs, pensions, and general investment accounts. Nutmeg has nearly $4.9 billion in assets under management and 140,000 customers.
JPMorgan has made it pretty clear that it is interested in growing its consumer franchise, whether in the U.S. or globally. Acquiring Nutmeg right around the time it is launching in the United Kingdom is no mere coincidence. The customers here provide a good start as JPMorgan plots its consumer banking foray into the U.K., and gives it the potential to cross-sell other consumer banking products to Nutmeg customers.
Source Fool.com