Jamie Dimon says JPMorgan Chase ought to positively be much less afraid of fintech threats
Jamie Dimon, CEO of JP Morgan Chase, will appear in CNBC’s Squawk Box on January 22nd, 2020 at the 2020 World Economic Forum in Davos, Switzerland.
Adam Galica | CNBC
His $ 3.4 trillion message to the management team of his bank goliath: Be scared.
“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 a good job, but other people did good work too Job done. “
Dimon’s blunt assessment was in response to polling analysts, including Wells Fargo’s Mike Mayo, who pointed out that fintech players have “knocked out” traditional banks with rich, tech-like ratings in recent years.
Dimon said he had sent his MPs a list of global competitors and that PayPal, Square, Stripe, Ant Financial and US tech giants like Amazon, Apple and Google are names that the bank needs to keep an eye on. Competitors are in many cases also customers of the company’s commercial and investment banking, he added.
The competition in the world of payments will be particularly fierce, he said: “I expect very, very fierce and brutal competition in the next ten 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 taking advantage of the increased debit card revenue for small banks and companies that Dimon was accused of failing to take reasonable precautions against money laundering.
He specifically called out Plaid, the payments startup whose takeover by Visa recently collapsed:
“People who abuse data given to them, like Plaid.”
Zach Perrett, 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.
With contributions from CNBC’s Dawn Giel