JPMorgan Chase will introduce new bond and certificate of deposit trading features in its mobile app, part of a strategy to capture a share of the self-directed investment market.
New Opportunities for Investors
The new tools will allow customers to research and purchase fixed-income securities through the same app they use for routine banking transactions. JPMorgan aims to attract investors who trade several times a month and targets a total assets goal of $1 trillion.
Why JPMorgan Ranks Behind Competitors
The enhanced platform represents JPMorgan's attempt to close the gap with established online brokerages like Charles Schwab and Fidelity. While the JPMorgan platform has reached $100 billion in assets under management, this is significantly smaller compared to competitors who have accumulated trillions over decades.
Growth Strategy Under New Leadership
The bank hired Paul Vienick from TD Ameritrade to overhaul its investment strategy. Future strategies include integrating bond trading with banking services and actively engaging with clients, allowing for instant access to funds across accounts. Vienick believes the self-directed business outside of core wealth management can be a trillion-dollar business.
The expansion of JPMorgan Chase's mobile platform reflects the bank's determination to compete seriously in the self-directed investment space, despite its late market entry.
