Shareholders have criticized JPMorgan Chase CEO Jamie Dimon for not providing enough details regarding the company’s huge technology plans and the decision to create an online-only banking institution in the UK, according to Financial Times. Financial Times.
In January, Wall Street titan announced that the Wall Street titan outlined plans to invest more than $11 billion in technology by 2022. This will result in an increase of 8 per cent in expenses, which could be detrimental to the bank’s profits goals.
Dimon’s insistence on spending huge on technology is tied to the danger he perceives as coming in the form of Big Tech and fintech. He stated that the sector should have been “scared to death” in the past”.
JPMorgan Chase is Under Fire
According to sources, The Financial Times reports that at a meeting in February in Florida, investors complained to Dimon that their bank did not provide enough details on how its enormous technology budget was allocated.
Particularly, shareholders expressed concerns over plans to increase the amount of money spent on the new initiatives by 30 per cent to around $15 billion and technology taking the largest portion.
Mike Mayo, a Wells Fargo bank analyst, tells The FT: “I’ve not talked to a single investor worldwide who hasn’t agreed with our conclusion that JPMorgan should provide more transparency about the reasons, where and when they’ll spend the record-breaking amount.”
At the Florida conference, the investors were critical of JPMorgan Chase’s decision to launch a digital bank within the highly competitive UK market in the past year. One of the largest shareholders tells FT that JPMorgan Chase hasn’t “provided any indicators to gauge the success of its digital bank at this time”.