Fintech Firms Are Rushing Towards Low-Fee, High-Tech Services — JPMorgan Bets On Its Banking Dominance to Do the Opposite

While fintech trailblazers like RobinhoodHOOD

and SoFiSOFI

are pushing low-cost, high-tech wealth management and banking products, one of America’s largest banks is betting that clients still want (and are willing to pay for) that human touch. In a push to attract more wealthy clients, JPMorganJPM

is opening a new Private Client division to entice the mass affluent.

• JPMorgan Private Client, which will launch with 14 locations in key markets, will target individuals with at least $750K in deposits and investments, per CNBC, but they are actively focused on those with much larger portfolios.
• The effort comes as the institution looks to expand its reach with affluent Americans — half of whom already bank with Chase, but only 10% invest with their wealth arm, per Chase’s Consumer Banking chief Jennifer Roberts.

Feeling wealthy yet? JPMorgan’s new Private Client branches are what’s left of First Republic, which it acquired during a series of bank failures in 2023. By year-end, JPMorgan says it will have 31 of these locations, along with a dedicated banking app. In exchange, customers can get a dedicated banker at a more upscale-looking location, which promises to offer a “concierge-level of service.” In exchange, you’ll have to pay a 1% annual management fee. Maybe that human touch will be worth it to some — but 1% of $1M can really add up.