JPMorgan Chase just reported record profits for 2019 — and CEO Jamie Dimon says it’s due to these tech priorities

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jamie dimon

Companies across corporate America are investing more heavily in IT, but a major question is how much return they’ll get on that increased funding.
JPMorgan Chase’s $11 billion annual tech budget — the largest among the Wall Street titans — helped fuel a record $36.4 billion in profits in 2019.
Those earnings were buoyed by the investment banking division’s record $2.7 billion in revenue — a 10% jump from the prior year.
Among other applications, Chase is using machine learning to better match investors with the 10,000 pieces of research the company puts out every year.
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Companies eager to know whether tech investments pay off can look no further than JPMorgan Chase.

The Wall Street giant on Tuesday reported a record $36.4 billion in profits for 2019, buoyed in part by its investment banking division’s record $2.7 billion in revenue for the year. CEO Jaime Dimon attributed the unit’s 10% jump to Chase’s $11 billion annual tech budget.

The sector “continued to add new client relationships on the back of our investments in bankers and technology in the U.S. and abroad,” he said in a release. And the investments in tech like AI and cloud computing are slated to continue, alongside a focus on “innovation, talent, security and risk controls.”

Chase is not the only financial titan to invest heavily in digital upgrades. Bank of America spends $10 billion a year on tech, while Wells Fargo invest $9 billion. Other firms like Walmart are also aggressively revamping their tech operations.

But as more companies pursue sweeping IT overhauls, a major question is what kind of return those investments will provide. While many corporations are unlikely to match Chase’s $36 billion in profits in 2019, the earnings provide a benchmark with which to judge results from the increased tech spending.

Chase is employing advanced tech like AI and machine learning to provide a more personalized experience for those investors that rely on its research service — which provides critical insight that helps shareholders decide whether to buy, sell, or hold their stock in a company.

In a recent blog post, the bank said it produces over 10,000 research notes every year but that clients “did not always know the reports existed.” Now, with machine learning, each subscriber receives the research that is specific to his or her interests.

Chase is also using artificial intelligence to better assist its corporate clients keep track of their money, including for payroll or in anticipation of large mergers. But it’s not just the applications themselves. The company is also aggressively hiring the talent needed to broaden its adoption of AI and other advanced tech.

It’s competing to try to win talent from Silicon Valley behemoths like Google and Microsoft and began offering new virtual internships that give prospective, entry-level employees an early look into the kind of work they would be doing at the bank.

These are just a few of the major changes underway at Chase …read more


Source:: Business Insider

      

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