FinTech: “Absolutely, We Should Be Scared S—less” – Jamie Dimon On Fintech Threat
Dimon also took aim at fintech Plaid for improperly using people’s data.
On a conference call on Friday, JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon made no secret of his apprehensions about the threat from fast-growing fintechs and tech giants across the globe. He was responding to analysts who said that fintechs’ leap-frogging valuations showed their rising ascendancy over traditional banks. (CNBC)
JPM should be on guard
“Absolutely, we should be scared s—less about that,” Dimon said. “We have plenty of resources, a lot of very smart people.”
“We’ve just got to get quicker, better, faster. … As you look at what we’ve done, you’d say we’ve done a good job, but the other people have done a good job, too.”
JPMorgan Chase quarterly report
JPMorgan’s latest earnings came in at $3.79 per share, up 47% from the same period last year. They handsomely beat Wall Street’s consensus forecast of $2.62 per share. Group revenues rose 3.4% to $30.2 billion, surpassing analysts’ estimates of a $28.7 billion tally.
Jim Cramer had fulsome praise for JPMorgan’s latest quarterly earnings, calling it a “flawless” quarter for the bank. “It was very, very good,” Cramer said on TheStreet.
The competition nipping at JPM’s heels
Dimon has sent his team a list of the competitors on his watchlist. The list includes and that PayPal (NASDAQ: PYPL), Square (NYSE: SQ), Stripe, Ant Financial as well as U.S. tech giants including Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOGL).
“I expect to see very, very tough, brutal competition in the next 10 years,” Dimon said, referring to payments. “I expect to win, so help me God.”
Fintechs not playing fair
However, Dimon shot off a broadside at fintech Plaid, saying “people who improperly use data that’s been given to them, like Plaid.”
Recently, Plaid’s M&A transaction with Visa (NYSE: V) fell through on antitrust considerations.
Dimon also said the fintechs indulged in unfair competition, probably did not take money laundering precautions and used small banks for extracting debit card revenue.
Related Story: JPMorgan Issues Bullish Bitcoin Analysis
Image Credit: Wikimedia Commons
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