JPMorgan broadens focus with new hires

JPMorgan Chase & Co has announced plans to enhance its commercial banking division, specifically targeting tech startups and early-stage companies. The largest bank in the United States intends to increase its workforce, having already hired over a hundred bankers this year to cater to firms in the innovation economy, encompassing sectors like technology, e-commerce, and life sciences.

During the bank’s investor day in New York, Doug Petno, JPMorgan’s CEO of commercial banking, emphasised the heightened focus on new client acquisition amidst market disruptions and changes in the competitive landscape. Petno stated that as the business expands, additional support will be added in the front and middle-office areas.

The recent banking turbulence caused by the collapse of Silicon Valley Bank in March has been advantageous for JPMorgan’s commercial banking unit, which currently boasts over 300 bankers. With many depositors from the failed lender seeking security in larger institutions, JPMorgan experienced an influx of clients. Subsequently, the bank acquired First Republic Bank and two other regional lenders that were seized by regulators.

Melissa Smith, head of innovation economy and specialized industries in JPMorgan’s middle market banking division, noted that over the past two months, the bank has witnessed numerous companies seeking a more stable environment. The primary aim of JPMorgan’s commercial banking division is to provide startups with essential account services, such as payments, cash management, and loans, before they reach a scale that necessitates more intricate advisory work, such as raising capital through equity or debt offerings.

To support its growth strategy, JPMorgan has made key appointments, including Ashraf Hebela as managing director of innovation economy startup banking and Kelly Belcher as the head of climate tech within the green economy. Furthermore, the bank plans to expand its services internationally, targeting early-stage companies in the United Kingdom, Europe, and Asia.