Quoted: JPMorgan’s Jamie Dimon warns of tech’s disruption of banking industry

“Silicon Valley is coming.”

Jamie Dimon, chairman and CEO of JPMorgan, in a letter to shareholders this week.

He was warning about startups trying to upend the traditional banking industry, including Lending Club, which matches individual and institutional lenders with borrowers. The San Francisco startup went public in December. Other tech companies in the business of lending money include Square and PayPal.

“There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking,” Dimon wrote.

Dimon also addressed the banking industry’s “critical” business of payments, and noted the competition: The aforementioned PayPal, and bitcoin. Some other fairly new payments providers we have written about include Stripe, which has helped drive Apple Pay’s success, Snapchat with its Snapcash service, and even Facebook, which is letting users send money through its Messenger app.

“There is much for us to learn in terms of real-time systems, better encryption techniques, and reduction of costs and ‘pain points’ for customers,” Dimon said.

 

Photo: Renaud Laplanche, third from right, founder and CEO of Lending Club, embraces CFO Carrie Dolan during opening bell ceremonies of the New York Stock Exchange to mark Lending Club’s IPO, Dec. 11, 2014. (Richard Drew/Associated Press)

 

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  • Caps

    Too bad it cannot happen fast enough. Thanks goodness we have competition to the banksters controlling everything.

  • 57girl

    Jamie Dimon should be in jail, and the Federal Reserve abolished. If the people of this nation ever woke up and realized the truth, both of the aforementioned would happen, I imagine; I pray.

    Is it any wonder, Jamie is worried? His empire is getting ready to fall. People are catching on — I hope, and when that day comes, maybe we will wise up and demand the power of coinage (at no interest to the public) will be returned to the US Treasury, where it should have been all along.

    ,

  • Boguseconomist

    Jamie DImon has done far more damage to the banking industry and the United States than any hacker could do. By causing a near-collapse of the country’s finances through incredible greed and manipulation, he has brought distrust of banks to a new high. By his actions in financing the “too big to fail” thinking of the Congress through campaign contributions, along with PACs sympathetic to the trickle-down philosophy of the Chicago School, he presided over the destruction of the American Dream and the MIddle Class. While millions lost their homes, Dimon prospered. To hear him warn us of danger would be ludicrous if it were not so infuriating.

  • Hmmm… Apple Pay is accepted in grocery stores, boutiques, restaurants, hotels and the list grows each and every day. I’m just waiting for the day when Apple announces Apple Pay services for Payroll, then the banks will really have something to worry about.

 
 
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