JP Morgan's Wealth Management Services in the EMEA

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JP Morgan's Wealth Management Services in the EMEA

Detailed research reveals that J.P. Morgan has operated in Europe for about 200 years. The firm (J.P. Morgan) has a sophisticated market presence throughout Europe, Africa, and the Middle East, with its headquarters located in London. The wealth management team of J.P. Morgan delivers on job roles that include portfolio advisory services, portfolio management, lending solutions, personal banking, custom mortgages, and the safety of client assets. Some main competitors of J.P. Morgan across Europe, the Middle East, and Africa include BNP Paribas, the Goldman Sachs Group, and Deutsche Bank AG among other financial wealth management service providers.

METHODOLOGY

Our research team combed through J.P. Morgan's EMEA website, press releases, news publications, etc., for precompiled reports on J.P. Morgan's wealth management services across Europe, the Middle East, and Africa. We researched for the exact job role of J.P. Morgan's wealth managers in this region, their main clients, critical/key challenges associated with onboarding new clients, and their main competitors. Unfortunately, no precompiled report had all the required information. We assumed the study is too broad and not entirely addressed by available publications.

We then decided to research for granular pieces of information on J.P. Morgan regarding its wealth management services across Europe, the Middle East, and Africa. We extracted pieces of information such as the competitors of J.P. Morgan, etc., from news articles that published how J.P. Morgan is engaged in a fierce competition with home-based among other rivals across Europe. We also unearthed through J.P. Morgan website that the EMEA headquarters of J.P. Morgan is in London. Therefore, we prioritized information regarding London and Europe. Using this granular approach, we extracted most of the information contained in our report.

There were no unearthed details on the main (individual) clients of J.P. Morgan except a few governments. Again, there was also no information on the critical/key challenges in onboarding new clients despite exhausting corporate websites and databases made available by J.P. Morgan. We triangulated by extracting from various J.P. Morgan website a few governments served by J.P. Morgan and general customers listed on its website as we assumed the listed clients are among the significant/major EMEA customers of J.P. Morgan. We also inferred critical/key challenges from some challenges experienced by J.P. Morgan in onboarding new clients from some general challenges encountered by J.P. Morgan and reported by some media platforms as the requested pieces of information were not directly made available despite thorough research. Our findings are as follows.

1. J.P. Morgan

J.P. Morgan has been operational across Europe for about 200 years. J.P. Morgan has a sophisticated market presence throughout Europe, Africa, and the Middle East, with its headquarters located in London. Within the EMEA region, J.P. Morgan has a unique client base and leadership spanning across a broad scope of financial services. The services offered by J.P. Morgan within the EMEA region are investment banking, trading, risk management, capital raising, cash management, custody, trustee services, investment management, private banking as well as private equity.

2. EMEA: The job role of J.P. Morgan's wealth managers

Globally as well as within the EMEA region, J.P. Morgan has positioned its wealth management team to deliver on job roles such as customized portfolio construction, wealth planning, delivery of executive/administrative services among other services. The wealth management team of J.P. Morgan also deliver on job roles such as portfolio advisory services, portfolio management, lending solutions, personal banking, custom mortgages, and the safety of client assets.

J.P. Morgan has put together a team equipped with the necessary resources to help in addressing its client financial objectives at various life stages. The organization provides solutions that span across several job roles a client may require ranging from portfolio construction to wealth management, strategies regarding business development, tax minimization, planning for college, retirement vehicles, wealth transfer across generations, philanthropy or a complete suite of credit, banking, and lending services.

3. J.P. MORGAN MAIN CLIENTS

J.P. Morgan provides services for the largest client franchises across the globe. The major clients of J.P. Morgan include corporations, institutions, hedge fund owners, governments as well as affluent (wealthy) individuals in several countries. Some significant clients of J.P. Morgan come from the asset management sector includes high-net-value individuals as well as individual investor clients that have high-quality global investments. Individuals and families are also clients of J.P. Morgan. Unfortunately, J.P. Morgan does not disclose the names of its affluent individual, family, or other clients despite detailed research.

Some clients that have appeared in the public domain over recent deals with J.P. Morgan within the EMEA region include:
  • Oxford University: Oxford University recently reached out to J.P. Morgan for a £750 million debt management issue.
  • The Government of Greece: The Government of Greece recently turned to J.P. Morgan to act as a "bookrunner" for its five-year bond. The services of J.P. Morgan has helped Greece to raise about EUR2.5 billion which converts to US$2.9billion.
  • J.P. Morgan has been invited by the Belgium government to participate in its EURO benchmark bond of 2050 as a joint "bookrunner."

4. KEY/CRITICAL CHALLENGES IN ONBOARDING NEW CLIENTS

J.P. Morgan has launched "Data Once" (its new digital approach to onboarding clients) within the United Kingdom. There were plans to roll out "Data Once" to other EMEA locations before the end of 2018. J.P. Morgan recently built a new portal after researching its clients’ challenges. Some challenges/issues faced by corporate treasurers (risk managers such as J.P. Morgan) within Europe, the Middle East and Africa (EMEA), include fast-paced technological changes as well as different interest rates across the region.

J.P. Morgan is striving to build competence across multiple jurisdictions throughout Europe. The financial manager (J.P. Morgan) already has a far-reaching presence across the European Union but is still trying to "uplift" and "round out" its capabilities. Before the end of March 2019, J.P. Morgan is expected to have acquired a full product delivery capability in three additional locations located outside of London in places like Dublin, Frankfurt, and Luxembourg.

Most private banks across Europe are moving on from simple portfolio management services to establishing new client relationships. Banks such as J.P. Morgan are strategizing by targeting the "asset rich, cash poor" entrepreneurs. One major challenge they face is stiff competition aimed at attracting new ultra-wealthy clients by J.P. Morgan and its competitors like UBS, Morgan Stanley, and Goldman Sachs.

As of 2018, BNP Paribas planned to invest about EUR3 billion (the equivalent of US$3.5 billion) aimed at changing how BNP Paribas utilizes technology, deals with its customers, and develops new products. BNP Paribas is a competitor to J.P. Morgan across Europe.

5. Main competitors (i.e., direct and new challenges, e.g., home-office)?

The main competitors of J.P. Morgan across Europe, the Middle East, and Africa include BNP Paribas, and the Goldman Sachs Group. The homegrown rivals of J.P.Morgan includes the Deutsche Bank AG and BNP Paribas.

Other competitors of J.P. Morgan within the EMEA region include Morgan Stanley and Lazard. J.P. Morgan recently estimated that eight big United States and European banks would foot a combined bill of about $7.5 billion within five years to move their capital markets operations away from the current EMEA headquarters location of J.P. Morgan (London) due to Brexit. The costs of these movements sum up to about 2% of banks’ global annual expenses.

As United Kingdom-based financial firms try to relocate some of their operations across Europe so that they can still work for other European Union clients, experts warn that such a rearrangement of the regional financial architecture is a threat to economic stability not just in Britain but across the whole of Europe. This threat to regional economic stability exists because a lot of European money currently flows through London.

Sources
Sources

Quotes
  • "J.P. Morgan has operated in Europe for nearly 200 years and has a sophisticated local market presence across Europe, the Middle East and Africa, with headquarters in London. Within the region, J.P. Morgan has an unparalleled client base and leadership across the spectrum of financial services products. Services offered in the region include investment banking, risk management, trading, capital raising, custody, cash management, trustee services, investment management, private banking and private equity."
Quotes
  • "Custom Portfolio Construction Wealth Planning Executive Services Portfolio Advisor Program Portfolio Manager Program Lending Solutions Personal Banking Custom Mortgages Safety of Client Assets"
  • "Our team affords access to the resources that can help address your financial objectives at every life stage — whether you seek portfolio construction and wealth management, strategies for business development, tax minimization, college planning, retirement vehicles, generational wealth transfer and philanthropy or require a full suite of banking, credit, and lending services."
Quotes
  • "J.P. Morgan is a leader in wholesale financial services and serves one of the largest client franchises in the world. Our clients include corporations, institutional investors, hedge funds, governments and affluent individuals in more than 100 countries. Clients turn to J.P. Morgan for our complete platform of financial services combined with flawless execution. Our businesses in the region include: Asset Management J.P. Morgan's Asset Management business provides institutional, high-net-worth and individual investor clients with high quality global investment management in equities, fixed income, real assets, hedge funds, private equity and cash liquidity. By building a reputation for investment excellence and superior service, J.P. Morgan Asset Management has become one of the largest asset managers in the world. "
  • "Asset Management has a network of partnerships across the region — Belgium, Danmark (Denmark), Deutschland (Germany), España (Spain) France, Italia (Italy), Luxembourg, Nederland (Netherlands), Norge (Norway), Österreich (Austria), Switzerland, Suomi (Finland), Sverige (Sweden) and the United Kingdom. Private Banking J.P. Morgan understands the complex challenges and opportunities that individuals and families of wealth face. In its advisory capacity, Private Banking helps clients to protect and grow their wealth across generations, creating the potential for them to achieve the vision they seek for themselves, their families, their businesses and their legacies. "
  • "Clients benefit from a diverse range of expertise, spanning investments, wealth structuring, trust and estate planning, credit, banking and risk management. Corporate & Investment Bank J.P. Morgan's Corporate & Investment Bank is a global leader across Banking, Markets and Investor Services. The world's most important corporations, governments and institutions entrust us with their business in more than 100 countries. The Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world."
Quotes
  • "Oxford University has enlisted J.P. Morgan to lead the first bond sale in its 850-year history. The university, home to 50 Nobel Prize winners, reached out to the firm for its £750 million debut debt issue. At 100 years, the bond will have the longest maturity of any from a British university and longer than any public issue of U.K. government bonds or gilts."
  • "The university's vice-chancellor, Professor Louise Richardson, said in interviews that the success of the sale will give them "confidence and freedom" to spend on major developments, with plans to invest £1.5 billion in building projects over the next 10 to 15 years."
Quotes
  • "February 16, 2019 Greece has turned to J.P. Morgan for its first foray into the debt markets since exiting its international bailout program. The firm acted as bookrunner on the five-year bond, helping Greece to raise EUR 2.5 billion ($2.9B) in the sale."
  • "The transaction came after spiraling spending pushed Greece into emergency bailout programs, enforced austerity measures, and froze it out of the bond market. It entered the loan program in 2010 in the wake of the financial crisis and exited in August last year."
Quotes
  • "BNP Paribas is investing €3 billion ($3.5 billion) to change how it uses technology, deals with customers, and develops new products. Assimilating the digital plumbing of Germany's second-biggest listed bank would set that effort back two to three years."
Quotes
  • "JPMorgan Chase & Co. and Goldman Sachs Group Inc. have been running up the score on their European rivals, dominating investment banking overseas as never before."
  • "Wall Street’s deepening penetration into the EU. Bank of America is turning a post office in the center of Paris into a trading floor for hundreds. Goldman Sachs, Morgan Stanley, and JPMorgan are shifting capital and staff to Frankfurt, Paris, and possibly other locales."
  • "JPMorgan Chase Chairman Jamie Dimon and his peers are increasingly signing up clients for work at the expense of homegrown rivals such as Deutsche Bank AG and BNP Paribas SA. In January, for instance, JPMorgan, Morgan Stanley, and Lazard advised Belgian drugmaker Ablynx and Paris-based Sanofi on a $4 billion takeover that featured no involvement by a European investment bank. This year, five of the six top institutions handling European transactions worth $500 million to $6 billion were American"
Quotes
  • "JP Morgan estimates that eight big U.S. and European banks face a combined bill of $7.5 billion over the next five years if they have to move capital markets operations out of London as a result of Brexit. Such costs would equate to an average 2 percent of the banks’ global annual expenses"
  • "UK-based financial firms are trying to shift some of their operations to Europe to ensure they can still work for EU clients, but warn such a rearrangement of the region’s financial architecture could threaten economic stability not only in Britain but also in Europe because so much European money flows through London. "
Quotes
  • "JPMorgan, the biggest US bank by assets, plans to move "several hundred" jobs from London to the Continent and had already transferred a handful of employees at the end of last year. It has informed other British staff of relocations, said a source close to the situation."
  • "The risk of a Brexit without an agreement "has increased", warned European Commission President Jean-Claude Juncker. Large US banks have prepared for such a worst-case scenario to ensure that the banking system remains functional, sources said."
Quotes
  • "Private banks must move on from pure portfolio management to look more at client relationships"
  • "Across the way in Zurich’s central hub of Paradeplatz is Credit Suisse, where a combination of investment and private banking is at the core of the bank’s business model. Its strategists target “asset rich, cash poor” entrepreneurs, with corporate, institutional-style needs, competing for new ultra-wealthy clients with UBS, JPMorgan, Morgan Stanley and Goldman Sachs."
Quotes
  • "The survey results illustrate the numerous issues facing corporate treasurers in Europe, the Middle East and Africa (EMEA), in addition to fast-paced technological change and a diverging interest rate environment."
  • "JPMorgan’s approach is to insulate its clients from as much change as possible. “We try to minimise the work they have to do and do the heavy lifting for them, which triggers much discussion around how we approach our own capabilities, products and services in terms of the ease of doing business,” says Ms Dean."
  • "As such, the bank is building out its competence in multiple jurisdictions in Europe. It already has a broad presence across the EU but is now focusing on uplifting and rounding out its capabilities. By March 2019 it will have broadly full product capability across three additional locations outside of London: Dublin, Frankfurt and Luxembourg."
  • "By offering clients more options and greater flexibility, JPMorgan is illustrating its commitment to the region. “We are making significant investments, which is resonating well with our clients,” says Ms Livesey. “Corporates are focused on how they can best defend their business against the unknowns and are asking for our support in helping them grow, with new products and technology platforms."
  • "JPMorgan recently launched Data Once (a digital approach to client onboarding) in the UK and plans to roll it out to other EMEA locations later in 2018. It has built its own portal based on research to find out where clients’ pain points were, and was inspired in part by Swift’s electronic bank account management protocols."