JPMorgan To Add More Staff As It Grows Startup Business

JPMorgan Chase & Co is expanding its commercial banking business, and it has announced new hires to support this expansion. The commercial banking business at the company targets tech startups and other companies that are still in their early stages.

JPMorgan announces new hires

JPMorgan is the largest lender in the United States. The company has now announced plans to add more staff to its operations. The new staff members will be an addition following another hire that was announced this year, where the company employed over 100 bankers.

The new staff employed by the Wall Street banking giant will go towards serving companies in innovative economies that include sectors like e-commerce, life sciences, and technology. The bank is also looking toward being more competitive as it deals with disruptions across the market.

While speaking at the JPMorgan investor day in New York, Doug Petno, the bank’s CEO of commercial banking, said, “As this year plays out with market disruption and the shift in our competitive landscape, we have substantially heightened our new client acquisition.”

The executive further said that the bank was taking steps to accommodate this growth. One of these steps includes integrating a significant number of front and middle-office support. The new hires also come at a time when JPMorgan has witnessed significant growth.

The commercial business division at JPMorgan has over 300 bankers. This division has benefited from the recent turmoil in the US banking industry that saw the collapse of Silicon Valley Bank in March this year. SVB is a failed lender that largely catered to startups and venture capital-backed institutions. The majority of depositors at this bank sought safety for their deposits in large financial institutions like JPMorgan.

Two other regional banks were also shut down by US regulators, including First Republic Bank. Earlier this month, JPMorgan purchased First Republic Bank, making it the largest bank in the United States.

JPMorgan’s commercial business has grown

The broader JPMorgan commercial bank has around 25,000 clients that include corporations, mid-sized businesses, non-profit organizations, and government organizations. It also boasts over 33,000 investors in the real estate industry and property owners.

The head of innovation economy and specialized industries at the middle market banking division at JPMorgan, Melissa Smith, said that there was a significant increase in the number of companies that had approached the bank over the last two weeks seeking a stable environment.

The commercial business unit by JPMorgan is also planning to offer startups access to basic account services, including cash management, loans, and payments. These services will report significant growth to a size that requires complex advisory work, including securing additional capital using equity and debt offerings.

Among the new hires that have been announced by the bank include Ashraf Hebela, who is the managing director of innovation economy startup banking. The bank has also appointed Kelly Belcher as the head of climate technology in the green economy. The bank plans to expand operations across Asia, Europe, and the United Kingdom.