JPMorgan Redefines Online Investing with New Tools

After lagging behind in the realm of online investing, JPMorgan Chase aims to position itself as a frontrunner.

The bank is expected to launch new features on Friday, enabling users to research and buy bonds and brokered CDs directly through its mobile application, as reported by Finance Newso.

According to JPMorgan executives, users can create personalized dashboards and compare bond yields within the same banking app or online portal used for monitoring account balances. This initiative is part of a broader strategy to enhance the bank’s reputation among investors who engage in trading periodically.

“Our objective was to design an experience that simplifies fixed-income purchases for our clients,” explained Paul Vienick, who leads online investing at JPMorgan’s wealth management division. “We applied the same principles of simplicity found in stock and ETF purchasing to the fixed-income market.”

Though JPMorgan stands as the largest bank in the U.S. by assets and a leader in numerous financial sectors, it remains a minor player in the online brokerage landscape. Despite steady growth driven by features like fractional stock purchases, the bank has only recently surpassed $100 billion in assets under management, according to Finance Newso.

This amount is significantly lower than industry leaders such as Charles Schwab, Fidelity, and E-Trade, which have had decades to develop their platforms and build substantial investor bases.

The bank’s initial effort to capture a portion of the self-directed investing market began in 2018 with the introduction of a free trading service called “You Invest,” an initiative promoted through high-profile sponsorships such as at the U.S. Open.

However, by 2021, JPMorgan acknowledged that the brand was not resonating as expected, leading to a rebranding to the Self-Directed Investing platform.

That same year, with roughly $55 billion in assets under management, CEO Jamie Dimon candidly addressed the product’s shortcomings during a financial conference.

“We don’t even think it’s a very good product yet,” Dimon stated to analysts. “So we’re driving that thing.”

A key aspect of JPMorgan’s shift was the recruitment of Vienick in October 2021, a seasoned professional from TD Ameritrade, Morgan Stanley, and Bank of America, tasked with revitalizing the bank’s investment efforts.

“There was a realization that we needed to bridge the gap in wealth management,” Vienick reflected during a recent interview at the bank’s headquarters in Midtown.

This includes expanding its management of wealth for affluent Americans through dedicated financial advisors at physical locations, bolstered by JPMorgan’s acquisition of First Republic in 2023. Although the bank serves half of the 19 million affluent households in the U.S., it captures only 10% of their investable assets.

The financial industry now acknowledges that robust online tools are essential, despite previous trends favoring human advisors who generate more revenue through additional services.

Around half of investors who work with a financial advisor also engage in self-directed investing using online platforms, Vienick noted.

Currently, JPMorgan is focusing on attracting more active investors—those who regularly research and purchase stocks—and who tend to favor acquiring bonds directly instead of through mutual funds.

The bank offers incentives up to $700 for customers who transfer funds to its self-directed platform.

Future enhancements include the ability for users to execute after-hours stock trades, according to Vienick.

This initiative is part of JPMorgan’s strategy to encourage customers who already bank with the institution or hold JPMorgan’s credit cards to consolidate their financial activities with the bank. This approach enables clients to have a unified view of their finances and facilitate instant transfers between accounts.