US bank JP Morgan Chase is using financial technology (fintech) to give its 47 million customers the opportunity to become share traders, through its You Invest service.
While retail banking is being transformed by the use of consumer-friendly fintech, such as mobile apps, the relatively untouched retail investment and wealth management sector has huge potential for disruption if a wider customer base can be engaged through the latest tech.
JP Morgan Chase’s You Invest, which is available to users of the bank’s mobile app and its website, offers 100 free trades in the first year, access to JP Morgan Chase research on stocks for free, and a portfolio building tool.
Retail banking is being shaken up by fintech, with mobile services making it easier for consumers to access and use financial services. For example, today’s consumers can find the best mortgage and insurance deals, transfer funds, and access loans via mobile apps.
This has enabled more people to access more services at a much lower cost than before, and has also increased the number of potential customers for banks.
Investment banking and trading are also trying out mobile apps in a bid to engage with, and win, more customers.
According to a CNBC report, Kelli Keough, global head of digital wealth management at JP Morgan Chase, said You Invest will target two broad groups – people who have never invested before, including millennials, and who may be overwhelmed by the sheer number of investment choices, and those who have a Chase account but invest elsewhere.
“For folks that are new to investing, there is a perception that trading is expensive,” said Keough, who joined the bank from Charles Schwab in 2015. “We wanted to lower the hurdles. We wanted to help people invest without cost being an issue, and to reward people who are doing more business with us.”