- Emerging fintech companies to receive access to funds, network
- Startups attend ‘In-Residence’ program for six months
JPMorgan Chase & Co. is the latest bank to take on financial technology startups, starting a new program to foster these companies in-house as they try to find ways to operate faster, with more security at a lower cost.
The bank will adopt fintech startups for six months in a program called In-Residence, offering them access to its facilities, systems and expertise, according to a statement Thursday from the company’s corporate & investment bank. Those with potential may receive continued support after the official period ends, the bank said, advertising its ability to help integrate businesses into bank networks and provide further funding.
“By giving them unparalleled access to JPMorgan’s people and network, we hope to enhance their ability to create technology-led solutions that can be put into practical use for our industry,” said Sanoke Viswanathan, chief administrative officer of the corporate & investment bank.
Wall Street banks are well aware of Silicon Valley’s threat to their business, hosting conferences on patent protection, attending meetings on new technologies, or, as JPMorgan did earlier, establishing internal technology hubs that even mimic startups. While financial technology startups could capture meaningful revenue, the banks realize the potential cost savings and partnerships, and have joined forces with their smaller competitors to develop their ideas.
JPMorgan’s program offers selected startups access to proprietary data and technology, as well as compliance, legal and risk expertise, according to the program website. The bank spends more than $9 billion a year on technology, with just shy of one-third of those funds going toward new investments last year, according to the statement.