JPMorgan & # 39; s Dimon: Square innovated where we should have


Jamie Dimon confessed on Tuesday having a little desire for Square.

At JPMorgan Chase's annual investor day in New York City, the bank's chief executive officer was asked about companies that could be tested by his bank, which turned out to be a disruptive financial services. JPMorgan invests billions of dollars a year in technology and has recently opened its own online bank, called Finn, and is expected to become the first US bank to launch its cryptocurrency.

But rather than answer this question directly, Dimon responded by hiring a company, Square, which realized what she would have liked JPMorgan Chase to do.

JPM CEO Jamie Dimon

Chief Executive Jamie Dimon said JPMorgan Chase sees the opportunity to provide advice to low-income households and leverage its cyber security expertise.

Bloomberg News

"They have imagined this little dongle", a device that connects to a smartphone or tablet and allows merchants to accept card payments.
"Dealing with things and it was a good idea," said Dimon.

Square then used the success of its card reader to provide other services to its business customers, such as the broader range of POS systems that allow merchants to accept cash or card payments. It also provides merchants with tablets and software that allows them to track sales trends, inventory and other important data.

"We did not give them that opportunity, Square did," said Dimon.

Finally, Dimon lamented Square defeating JPMorgan by providing online loans to small businesses.

Square Capital, its online lending arm, began offering business loans in early 2014 – nearly two years before JPMorgan began issuing its own digital small business loans through a partnership with fintech lender OnDeck Capital .

Square "said," You know what, since we know this company and that it might need an advance this year, we could advance them $ 10,000, $ 15,000 or $ 100,000 " Dimon said, they did everything we could have done that we did not do. "

None of this means that JPMorgan has no innovations in itself.

For example, Dimon said he saw real opportunities in the "$ 40 trillion investment market", especially around providing advice to households with modest means.

"People have to learn to invest money," he said. "Financial education, in America … we do a terrible job, usually for people with low incomes. We have some new products coming for this. "

He added that he thought the bank could also benefit from its expertise in cybersecurity.

"We go to a lot of customers, we educate them to cyber [and] "We do not charge for it," he said. "We call them to tell us:" We are seeing problems in the way you move your money in your computers. "I consider this a real opportunity."

Andy Peters "class =" in grayscale

Andy Peters

Andy Peters writes about regional banks, consumer credit and debt collection for American Banker.

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