JPMorgan Chase Introduces Bond Trading on Mobile App
JPMorgan Chase is rolling out new features that enable investors to research and purchase bonds and brokered certificates of deposit (CDs) directly through its mobile banking app. This upgrade allows users to customize screens and compare bond yields within the same platform where they monitor their accounts, reflecting the bank's push to expand its footprint in self-directed investing.
Closing the Gap with Industry Leaders
Once trailing in the online investment space, JPMorgan is determined to catch up with well-established players like Fidelity and E-Trade, which boast decades of investor trust and extensive market share. Although JPMorgan has steadily grown its capabilities, including the introduction of fractional stock shares, it recently surpassed $100 billion in assets under management—a fraction of what its competitors command.
Revamping Self-Directed Investing
The bank initially launched its online investing platform under the name "You Invest" in 2018, but the brand failed to resonate as hoped. By 2021, JPMorgan rebranded it simply as the Self-Directed Investing platform and acknowledged that the product still needed significant improvements. JPMorgan's CEO described the platform candidly as "not yet very good," emphasizing a strong commitment to rapid enhancements.
Leadership and Strategy Boost
In late 2021, JPMorgan brought in fresh leadership with extensive industry experience to revamp its self-directed investment offerings. This strategic hire signaled recognition of the bank’s need to modernize and better serve investors in a digital age. Today, JPMorgan also leverages its expansive branch network and strong brand reputation to attract affluent households whose wealth management assets remain largely untapped by the bank.
Targeting Active Investors and Consolidating Wallet Share
The latest app enhancements cater to investors who trade frequently and favor direct bond purchases over mutual funds. To incentivize platform adoption, JPMorgan offers bonuses up to $700 for transferring assets to its self-directed account. The bank is also developing functionality to allow after-hours stock trading, further appealing to active traders.
By integrating banking, credit cards, and investments into a unified platform, JPMorgan aims to deepen customer relationships and provide seamless financial management. This consolidation permits investors to view their finances holistically and move funds effortlessly between accounts.
Ambitious Vision: Achieving a $1 Trillion Self-Directed Business
JPMorgan’s leadership is optimistic about scaling its self-directed investing division to a $1 trillion enterprise outside its core wealth management business. While acknowledging the challenge, the bank is focused on delivering the digital tools and investment options that its clients increasingly demand.
With a potent combination of technological upgrades, motivated leadership, and a vast existing customer base, JPMorgan is poised to take a prominent place among leading online brokers in the coming years.
