JPMorgan Chase has bought a stake in California-based fintech firm InvestCloud for an undisclosed sum, to boost its digital capabilities for individual investors.
InvestCloud offers collaborative cloud-based solutions for global banking and brokerage, investment management, private banking, asset services, and other financial institutions. The firm’s digital applet platform supports $1.5 trillion in AUM, across 660 institutions.
The deal will allow JP Morgan and Chase wealth management clients to gain access to user-driven online investing through easy-to-use dashboards, additional mobile functionalities, and seamless account opening from 2017.
JPMorgan Chase CEO Jamie Dimon said: “This is another opportunity for us to collaborate with a FinTech company to provide our clients with the best experience.”
The bank said that it will eventually introduce new features to enrich client interactions with advisors, and personalise the integration of its market insights.
JPMorgan Chase CEO of asset management Mary Callahan Erdoes said: “We have been managing wealth for more than 200 years. Pairing these new technological capabilities with our trusted guidance will help our clients achieve their long-term financial goals with flexibility in how they interact with us and our advisors.”
InvestCloud CEO John Wise said: “Our first-class digital solutions are uniquely flexible, providing JPMorgan Chase with direct access to our pipeline of valuable technology for its wealth management clients.
“Likewise, in establishing a long-term relationship with JPMorgan Chase, we’re able to leverage their strategic input, particularly as we address the challenge of scale with other clients.”