Key Strategies of JPMorgan Chase 

Key Strategies of JPMorgan Chase 

JPMorgan Chase & Co. is recognized and known as one of the most successful financial institutions across the globe. Ranked and rated high by several top-ranking agencies like Forbes and Fortune 500, JPMorgan Chase & Co., is recognized as the largest bank by market capitalization across the globe as well as the #4 largest bank in the world. The company in its entirety avails the general public with its financial services and investment banking that spans across multiple product offerings and services. Its business segments and market niches focus on key aspects of the financial and banking world and the segments include Asset Management, Community & Consumer Banking, Wealth Management & Asset, Commercial Banking, Investment Banking & Corporate Banking as well as Treasury Services. In the entire United States, there are four major financial and banking entities recognized and the biggest and largest banking firms providing excellent and brilliant services known as “The Big Four.” However, JPMorgan Chase & Co. takes the lead alongside Bank of America, Well Fargo, as well as Citigroup.

The company’s products and service offerings include but are not limited to:

• Banking
• Commodity Trading,
• Credit Cards
• Stock Trading
• Insurance Services
• Investment Management
• Mortgage Loans
• Mutual Funds
• Private Equity
• Risk & Property Management
• Wealth and Asset Management
• Investment Management, et cetera.

In 2022, JPMorgan Chase & Co. recorded a whopping sum of $124.5 Billion USD as its revenue, and $42.1 Billion USD as its net income (profit). Although being in the system for over 2 centuries as its root could be traced back to The Bank of Manhattan Company founded in the year 1799, the outstanding feat of this company is mind-blowing. However, there has an opinion that the company’s success could be traced to its 5 key strategies and business approaches. In this article, you would be shown in detail the 5 key strategies utilized by the giant company to achieve this great feat, however, before delving into addressing these key strategies, a brief overview of the company’s recent transition would be addressed. 

JPMorgan Chase & Co. Recent Transition 

In this section, you would be shown a quick review of the changes and transition that has happened to the company as of late. It is imperative to note that these changes form part of the company’s identity and shape it into becoming what it is today. Hence a close review would give you an idea of what the company has been through in recent times. 

JPMorgan Chase & Co., under the leadership of Jamie Dimon in the year, 2013 teams up with top public foundations whose services majorly revolve around philanthropic pursuits, the likes of Bill and Melinda Gates Foundation, Children’s Investment Fund as well as GlaxoSmithKline to launch a social program tagged with the name, Global Health Investment Fund to look into late healthcare technology trials. The fund raised for the social course amounted to a whopping sum of $94 Million USD and it is to be used in providing vaccines and essential drugs for the treatment of both mild and severe sicknesses as well to get medical devices and tools which are not used in the hospital perhaps due to their low demand or price level.  

In the following year, 2014, JPMorgan Chase & Co., rips off it commodity trading unit by selling it off to a trading company operating under the name, Mercuria for a total sum of $800 Million USD. Although, the overall market value of the unit is worth 3.5 Billion which includes some metal and oil stocks not included in the deal.    

In the year 2019, JPMorgan Chase & Co. launched a digital token that could be used as a transaction exchange between its customers with wholesale businesses. The digital coin is tagged with the name, JPM Coin and would become the first-ever issued cryptocurrency coin issued by a bank in the United States. 

On the 14th of May 2020, the company reportedly violates human rights with its Asset Management business segments. The publication was released by Financial Times. Nonetheless, JPMorgan Chase & Co., responding to the accusation reiterate its strict policy that shuns human right violation, affirming that it often runs a thorough check on companies before onboarding them and that any entity found guilty of this act is ripped off. 

In the year 2021, JPMorgan Chase & Co., witnessed its first retail banking operation outside the shore of the United States as it extends into the retail banking market in the U.K. by launching its app-based current account. The app was launched by one of its major subsidiaries operating under the name, Chase Bank.    

In the year 2022, in March, JPMorgan Chase & Co. recorded the latest wall street experimentation with technology by using a blockchain for collateral settlements. And in September of the same year, the company in a bid to expand its blockchain payment processing business announced its intention to purchase Renovate Technologies. 

The Five Key Strategies of JPMorgan Chase & Co. 

As aforementioned in the introductory part of this piece, the success of JPMorgan Chase & Co. is latched in the fact that it utilizes some key strategies and approaches with are not used by its counterparts. In its entirety, JPMorgan Chase & Co. builds a strong model called Model for Impact. This model is built on 5 basic premises which serve as the company’s strategic key drivers whilst outstretching to the 3 key stakeholders of the company: its environments, its customers, as well as its employees. However, this section will reveal in detail these 5 key strategies utilized by the financial and banking institution giant. 

5 key strategies of JPMorgan Chase include: 

Corporate Culture: 

One of the keys to the success of JPMorgan Chase & Co. is latched in this strategy. The company leverages its clear and understandable corporate culture to build itself an uncompromising internal force that is responsible to drive the company into its expected and desired status. Using key factors like Business Principles (including, operational excellence, exceptional clients services, commitment to responsibility, and integrity, winning culture), Code of Conduct (including, portraying its heritage, how it treat its major stakeholders), Code of Ethics for Finance Professionals (involving the ethical disposition of its professionals) as well as its Leadership Governance; JPMorgan Chase & Co., is able to put the entire organization in shape for its massive exploits.        

Internal Control: 

Internal control is an integral aspect of every financial institution as such must be held in high esteem, JPMorgan Chase & Co., understood this fact and has leveraged its internal control to build itself a brand that runs automated checks and balances of the overall operation of the company. Units such as internal audits, risk management, finance, and regulations compliance are tailored to ensure the company has a strong and viable control system in place. 

Customer Commitment: 

Understanding the fact that the key to the success of every organization solely depends on its customers, JPMorgan Chase & Co. strives meticulously to ensure it gives nothing but a delightful and memorable service experience to every customer regardless of their sex, age, race, and financial status. As a result of this commitment, all its business products, and service offerings which include: Banking, Commodity Trading, Credit Cards, Stock Trading, Insurance Services, Investment Management, Mortgage Loans, Mutual Funds, Private Equity, Risk & Property Management, Wealth and Asset Management – are built using a customer-centric approach that helps retains and build a long-lasting relationship with every single customer that comes in contact with the company. 

Sustaining External Stakeholders 

With an adequate understanding of the values attached to financial health coupled with the fact that hundreds of thousands of people are struggling with their financial lives, JPMorgan Chase & Co., utilizes financial health strategy to reach out to the world by donating a total sum of $125 million over the last five year in a bid to widen the horizon of financial independence of people as well as improve their financial health. JPMorgan Chase & Co. works closely with grass-root companies and firms to help address the financial problem of the strata of people who are prone to face financial crises in the communities. These strata of people include by are not limited to immigrants, low-income earners, the disabled, the aged, et cetera.     

The company’s philosophy is built on the premise that a healthy financial state is a foundation that upholds households, communities as well as the overall economy of a nation. And that no business entity can thrive in their business ventures if the nation suffers financial health impasses.

Passion for Continual Growth: 

Perhaps one of the major key drivers of the company’s incessant expansion and resilience is its passion for continual growth. Continuous improvement has become of the key strategies of JPMorgan. Through this innate ability, JPMorgan Chase & Co. has been able to review its past antecedents as well as throw a dart into the future and juxtaposition the two results to provide an improvement and be best prepared for the future ahead. 

Conclusion 

Having thoroughly reviewed the key strategies of JPMorgan Chase & Co. in piling the company into its current success state which serves as the main portion of the article, we hope that you are able to gain relevant knowledge from this piece in every possible way.