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USA: Jamie Dimon says JPMorgan Chase should be scared about fintech threat

The CEO of the $3.4 trillion banking goliath told the management team to be frightened of fintech threat.

Jamie Dimon, CEO of JP Morgan Chase, last week said he sent to his deputies a list of global competitors that are threats to the banking giant. The list includes PayPal, Stripe, Square, Ant Financial, as well as U.S. tech giants like Apple, Google, and Amazon. These are names JP Morgan has to keep an eye on, according to Dimon, although they are also clients of JPMorgan’s commercial and investment banking in many cases.

His raw assessment came as a response to questions asked to him from analysts. Mike Mayo of Wells Fargo was one of the analysts, and he pointed out that fintech players, with rich tech-like valuations, have trounced in recent years the traditional banks.

A few global fintech giants. Apple Pay, Alipay, WeChat Pay, Union Pay, etc. Image Source: South China Morning Post.

Over the years, a new breed of fintech players have emerged. It has been led by PayPal, Square, and other tech giants around the world like Ant Financial. These companies around the world have grown exponentially users and market value. And Jamie Dimon, as well as JPMorgan Chase have watched.

In a conference call last Friday, Dimon said the banking goliath should be super scared about that (fintech threat). In his words, “We have plenty of resources, a lot of very smart people. We’ve just got to get quicker, better, faster… As you look at what we’ve done, you’d say we have done a good job, but the other people have done a good job too.”

Dimon expects a super tough, brutal competition in the world of payments in the next 10 years. And in his words, “I expect to win, so help me God.”

USA in focus:

Population: 328.2 million (2019)

GDP: $87.7 trillion (2019)

GDP Per Capita: $65,297 (2019)