JP Morgan Keeps Opening Bank Branches While Investing in Tech Including AI and Digital Payments

JP Morgan (NYSE:JPM) is out with Q4 2020 results and the numbers are a clear beat on both the top and bottom line. JPM shares are up about 1% in pre-market trading.

JPM is one of the most successful banks in the world benefiting from the capable leadership of Jamie Dimon – a banker who has attained legendary status on Wall Street.

The beat was largely driven by corporate and investment banking which jumped by 31% in revenue ($9.5 billion) and 48% in net income ($2.9 billion) versus the year prior. It’s hard to argue that it wasn’t a great quarter.

So what about tech? Or Fintech specifically?

Dimon had this to say:

“We continue to invest in and grow our businesses. For example, in 2019, we added over 70 new branches in 16 new markets, continued our Commercial Banking international expansion, and became the first U.S. bank to be approved for a majority-owned securities business in China. We continue to make large investments in technology, including AI, cloud, digital and payments, as well as other investments in innovation, talent, security and risk controls. These actions will help us continue to grow and serve our clients going forward. I am extremely proud of how we serve our customers, clients and communities globally – we stand by them in good times and in tough times, and work to earn their trust every single day.”

So while JP Morgan is bucking the bank branch trend of reducing brick and mortar locations (as well headcount), JPM continues to invest in the future – IE artificial intelligence, the cloud and digital payments/transfers (JPM Coin, perhaps?). JPM appears to be betting on both a traditional and digital future by hedging bets with more physical locations even while the youngs migrate to banking apps – avoiding the teller queue. At least for now.

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