Jamie Dimon says JPMorgan Chase ought to positively be much less afraid of fintech threats
Jamie Dimon, JP Morgan Chase CEO
David A. Grogan | CNBC
Jamie Dimon, CEO of JPMorgan Chase, has watched a new breed of fintech gamblers led by PayPal, Square, and tech giants around the world have exponentially increased users and market value.
His message to the management team of his $ 3.4 trillion bank goliath: be afraid.
“In any case, we should be less afraid,” said Dimon on Friday in a conference call with analysts. “We have a lot of resources, a lot of very smart people. We just have to get faster, better, faster. … If you look at what we did, you would say we did some good work, but other people did good job too. “
Dimon’s blunt assessment was in response to questions from analysts, including Wells Fargo’s Mike Mayo, who pointed out that fintech players have “knocked down” traditional banks in recent years with rich, tech-like ratings.
Dimon said he sent his MPs a list of global competitors, and PayPal, Square, Stripe, Ant Financial, and US tech giants like Amazon, Apple and Google are names the bank needs to watch out for. Competitors are also in many cases customers of JPMorgan’s commercial and investment banking, he added.
Competition in the world of payments will be particularly fierce, he said. “I expect very, very fierce and brutal competition in the next 10 years,” said Dimon. “I expect to win, so help me God.”
Dimon added that in some cases the new players were “examples of unfair competition” that the bank would take action against at some point. It included players who benefit from higher debit card revenues for small banks and companies that Dimon has been accused of not taking precautions against money laundering.
He specifically called out Plaid, the payments start-up whose takeover by Visa had recently collapsed, and said, “People who abuse data given to them, like Plaid.”
Zach Perret, CEO of Plaid, declined to respond directly to the allegation during an interview with CNBC’s David Faber, adding that Plaid is spending time with the bank on a partnership.
When contacted for further comments, a Plaid spokeswoman said the company was “focused on making sure people have access to their own financial information so they can securely share it with permission to use the fintech apps they choose . “
She added that “privacy and security are central to everything we do, including the data sharing agreements we have with JPMorgan Chase among many other banks.”
– CNBC’s Dawn Giel contributed to the report.