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.
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.