JP Morgan unveils digital investment service to engage new investors
Date: 2019-07-12   Author: Pankaj Singh  Category: #news

JP Morgan unveils digital investment service to engage new investors

New York-headquartered multinational investment bank and financial services company J.P. Morgan Chase is reportedly in talks to roll out a new and low-cost robo-advisor to lure banking customers to invest in their firm.

Apparently, after almost a year of fine-tuning and user trials at 27 Brooklyn-based branches, the firm will be unveiling its digital investing service named You Invest Portfolios for an annual fee of 0.35% of assets and will place users into an investment portfolio comprised of the bank’s exchange trade funds (ETFs). 

Jed Laskowitz, J.P. Morgan executive who runs You Invest, mentioned that the calculated fee agrees with what rivals from Wealthfront to Morgan Stanley charge for similar services, but unlike most competitors, the bank will be waiving the fee for underlying investments.

The ETFs to be used by J.P. Morgan will range from 2 to 50 basis points in terms of cost and clients will predictably save an average of approximately 15 basis points in fees.

Laskowitz noted that providing the service 35 basis points will offer great value to users given the integration with the J.P. Morgan experience and the firm’s rebates for the underlying ETF expenditures.

Evidently, this J.P. Morgan move highlights its push to snatch market share from rivals and broaden the pool of American stock market investors. According to a 2017 Gallup report, only about half the US population owns stocks through retirement accounts, mutual funds or individual equities, and only 31% of population below the age of 30 owns shares.

Seemingly, by relying on digital solutions, America’s largest banking service could profitably handle portfolios for people with as little as $2500, which is the lowest limit for its new product. Supposedly, banks with full service financial advisors target investors with larger amounts of money.

For the record, J.P. Morgan Chase is the largest bank in the United States and has been ranked as the sixth largest banking service in the world by total assets.

 

Source credit: https://www.cnbc.com/2019/07/10/jpmorgan-creates-robo-adviser-you-invest-portfolios-with-free-etfs.html



About Author


Pankaj Singh

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More from Pankaj


Post Recommendents

Indonesian P2P lending startup JULO raises $10 million in Series A2
Author: Pankaj Singh

Fintech companies in Indonesia are witnessing a substantial growth lately. The fintech boom in Indonesia is due to low access of businesses to traditional capital sources. P2P lending firms are one of the hot seats for...


Investment firm Groww raises ₹154 crore in the Series B funding round
Author: Paroma Bhattacharya

  • Groww presently offers more than 3000 options in mutual funds for investment.
     
  • The company aims to use its raised funds to double its tea...


Virgin Atlantic plans to fly more flights to London from Scotland
Author: Saipriya Iyer

  • Virgin Atlantic has also planned 35 new long-haul routes in Asia, Africa, and South America.
     
  • Out of the total 84 new destinations ...