Traditional Brokerage Business Under Attack: JP Morgan Takes the Spotlight with You Invest
A couple of days ago numerous news outlets, including CNBC, Bloomberg, Reuters, and CNN, reported that JP Morgan Chase is launching a new kind of DIY investing service model next week that will be embedded as a part of the current Chase Mobile banking app and online banking service – an entirely new digital trading platform to acquire more investors and their assets (back) to JP Morgan. Releasing new functionalities and improvements for existing banking apps is not anything new, but JP Morgan’s announcement came with an incredible twist. JP Morgan Chase chose to tackle the traditional discount brokers and new zero-commission brokers heads on with a new kind of bundled trading offering under their new You Invest investment management service line: free or discounted trades (i.e., a kind of price band model that is ultimately dependent on your loyalty/service level) 1)“Clients can get 100 free trades every year if they maintain an account…
To Develop Trust, Robo-Advisors Have to Focus on the Value Proposition First
We all probably agree that the landscape of wealth management is globally being shaped radically by many interconnected trends. The wealth management industry has faced various mutually intertwined pressures that have been growing over the past decade, with global macroeconomic tailwinds, rapidly changing the technology landscape, significant monetary policies, evermore demanding customers, and the avalanche of regulatory and compliance requirements. It has become ever-more increasingly challenging to create shared value. While these make it hard for new entrants to enter the market, various technological advancements are breaking barriers to market entry and enabling new things to emerge. The rise and evolution of the robo-advisors and other forms of digital wealth management is one of the most exciting trends that is being currently discussed and deservedly so. These things are forcing incumbents to rediscover their who’s and why’s – who are our customers and what do we offer to them. In…