Innovation

Jamie Dimon: Don't Kill FinTech

The fear that robots will replace humans in much of the world of financial services isn't necessarily overstated or unfounded – but that doesn't mean technology and innovation should be feared.

That's according to JPMorgan Chase CEO Jamie Dimon, who recently spoke for a podcast with Recode to discuss the upcoming presidential elections and the ongoing disruption in FinTech and banking services.

"There are downsides to a lot of things," the executive said in relation to the accelerated pace of change and disruption in financial services thanks to technology. "There are downsides to flying – people die every now and then. Do you want to stop all air flights? There are downsides to pharma; sometimes they're misused. Do you want to stop using pills?"

Dimon continued that, while disruption can create problems, the solution should be to address those problems directly and not rid the market of the technology – and the underlying cause for that technology – entirely.

The executive also talked about what he would do if he were the next President of the United States.

His view include raising the minimum wage, but "not equally everywhere," and introducing relocation, job training and income assistance programs to help the unemployed and underemployed.

Dimon added that he would expand the earned income tax credit, Recode said, to provide aid to "lower-income and underprivileged people, especially in inner cities."

Regarding immigration, Dimon said he would overhaul policy in this regard, arguing that "we are pushing capital and brains out of America today."

The podcast also addresses the executive's views on industry collaboration with technology companies, as well as the lackluster performance of companies looking to go public today.

"For companies that want to go public, there's a long list of negatives," he said. "Painful corporate governance, focus on compensation, public interest groups get involved." Reports added that JPMorgan has a massive interest in getting the number of IPOs up as it underwrites many of their floats.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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