Jamie Dimon, CEO of JP Morgan Chase
David A. Grogan | CNBC
JPMorgan Chase CEO Jamie Dimon watched as a new kind of fintech players, led by PayPal, Square and technology giants around the world, grew users and market value exponentially.
His message to the management team of his $ 3.4 trillion banker: Fear.
“Absolutely, we need to be afraid of it – less about it,” Dimon said in a conference with analysts on Friday. “We have a lot of resources, a lot of smart people. We just have to get faster, better, faster … If you look at what we did, you would say we did a good job, but the other people did too. good job done. ‘
Dimon’s straightforward assessment was in response to questions from analysts, including Mike Mayo of Wells Fargo, who pointed out that fintech players have valued traditional banks over the past few years with a rich, technological valuation.
Dimon said he had sent a list of global competitors to his deputies, and that PayPal, Square, Stripe, Ant Financial, as well as U.S. technology giants, including Amazon, Apple and Google, are the names the bank should be watching. The competitors are in many cases also customers of JPMorgan’s commercial and investment banking services, he added.
The competition will be particularly fierce in the world of payments, he said: “I expect to see a lot, very hard, fierce competition in the next ten years,” Dimon said. “I expect to win, so help me God.”
Dimon added that in some cases the new players were ‘examples of unfair competition’ to which the bank would eventually do something. He included players taking advantage of the richer debit card revenue for small banks and companies accusing Dimon of failing to take precautions against money laundering.
He specifically called Plaid, the start-up for payments whose acquisition by Visa had recently collapsed, saying ‘people who misuse data given to them, like Plaid.’
Plaid CEO Zach Perret declined to comment directly on the allegations during an interview with CNBC’s David Faber, adding that Plaid was spending time with the bank on a partnership.
CNBC’s Dawn Giel contributed to the report.