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based on case study by Anil Anirudhan and Sanjib Dutta, IBS Centre for Management and Research (ICMR), Hyderabad (title- “JPMorgan Chase and Co. - Creating a Next-Gen Banking Experience Powered by Digital Technology”, 2020)

Problem Statement

<aside> <img src="/icons/help-alternate_blue.svg" alt="/icons/help-alternate_blue.svg" width="40px" /> How can JPMorgan Chase (JPMC) successfully defend itself against big tech and fintech entrants?

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JPMC had emerged as a disruptor in banking/financial services industry with breakthrough innovations in financial products and services. But there was an ever-growing threat from technology/platform players-

Apple forayed into digital payments with its mobile payments and digital wallet service ‘Apple Pay’, available in over 40 countries and processed over 1.5 billion transactions in 2021 alone, growing its user base to 507 million globally.
Amazon’s ‘Amazon Cash’ and ‘Amazon Lending’, providing over $ 5b in loans to small businesses since its launch.
Google is into payments business ‘Google Pay’ for money transfer and to make payments to service providers. As of 2023, Google Pay has 150 million active users in 30 countries, processing millions of transactions daily
New-age banking and investments applications such as Fidelity, Venmo, Revolut, Acorn, etc.

Competitive Analysis:

Apple Pay’s seamless integration with iOS devices gives it a significant edge in the mobile payments market.
Google Pay’s strong user base in emerging markets and its integration with other Google services.
Amazon’s ability to leverage its massive customer base and provide financial services directly through its platform.

How can JPMorgan Chase through its Chase app successfully defend itself against big tech and fintech entrants?

About JPMorgan Chase and the Chase App

JPMorgan Chase and Co. is the largest bank in the USA and the world’s largest bank by market capitalization in 2023. JPMC’s business is divided into four segments - Customers and Community Banking (CCB), Corporate and Investment Banking (CIB), Commercial Banking (CB), and Asset and Wealth Management (AWM). Delivering excellent client service; acting with integrity and responsibility; and supporting growth of its employees are the core principles of JPMC. Technical capabilities at JPMC include, Hybrid Cloud (Pubic + Private), Big Data (Internal + External knowledge); AI and ML for customer behavior analysis, loans processing, Monte Carlo based risk management and trading algorithms; and Blockchain for financial transaction.

The Chase App was the outcome of JPMC’s “Mobile first, digital everything” initiative where company spent over 10 percent of its revenues on digitalization and building its own technology. Chase Mobile is the banking app that allows customers to make deposits, payments, track accounts on mobile phone and make cardless ATM transactions. Some of the features include-

Account management - view balances, recent transaction, and account details.
Check deposit using camera on your mobile.