Many people want banks and other financial institutions to innovate. That process often requires spending big money on technology for updates and upgrades. JPMorgan Chase gets flack for its tech spending plans, confirming one can’t please every investor no matter what.
JPMorgan Chase Has Big Plans
it is commendable to see an archaic institution like JPMorgan Chase acknowledge change is necessary. CEO Jamie Dimon has unveiled a plan involving significant spending on technology-oriented upgrades. Technology will play a crucial role in the evolution of banking and finance. Getting on board now is essential, as companies would risk missing out entirely otherwise.
Unfortunately, JPMorgan Chase shareholders are not too amused by these plans. They fear there is some crucial detail being withheld regarding this spending plan. Spending over $12 billion in 2022 alone is a very ambitious plan that warrants further inquiry. That plan alone would increase the bank’s expenses by 8% for the year. Not necessarily the best option during times of financial uncertainty and instability.
Analyst Mike Mayo adds:
“I’ve not talked to one investor globally that has disagreed with our conclusion that JPMorgan needs to provide better transparency on where, why and when they will spend this record amount.”
Moreover, JPMorgan Chase intends to establish a digital-only bank in the United Kingdom. Contrary to other parts of the world, the UK would be a good place for digital-only banking initiatives. However, it is a very crowded and competitive market, making some wonder if the bank can make a meaningful impact in that segment.