How JPMorgan’s CIO decides which startups to partner with, which to invest in, and which to outright buy (JPM)


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JPMorgan Chase is a giant on Wall Street, but it’s also very engaged with the smaller players in the fintech world.
The bank paid over $220 million to buy WePay in October, and led a $100 million investment in Bill.com weeks before that.
CIO Lori Beer explained how and why JPMorgan decides to get involved with a tech startup — which can take the form of a residency, partnership, investment, or outright acquisition.

Last October, JPMorgan Chase made an unprecedented foray into the financial-technology space, inking its first major acquisition with the purchase of payments firm WePay for more than $220 million.

A couple weeks before that, the firm led a $100 million funding round for Bill.com, another payments company, which valued the firm at nearly $745 million.

JPMorgan is a towering giant on Wall Street, but it keeps a keen eye on the industry’s smaller players. It’s traditionally done that by way of partnerships and smaller investments.

But as fintech startups have emerged at an increasingly rapid pace over the past decade, JPMorgan has recognized that engaging with companies that can potentially unleash industry-changing innovations at an earlier stage serves its interest in several ways.

How and why does JPMorgan decide to get involved with a fintech startup?

Business Insider recently spoke with Lori Beer, JPMorgan’s chief information officer, about its strategy for working with companies in the fintech space.

The company is picky about who it works with, but for very young companies that it finds promising, it offers a residence program to build out their products within JPMorgan’s ecosystem.

“Although we go through a very rigorous screening process, once we decide there’s potential in a specific fintech we will bring them inside of our walls via the JPMorgan In Residence program,” Beer told Business Insider. “These start-ups have …read more

Source:: Business Insider

      

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