Dimon: Consumer Payments ‘New Battleground’ for Banks

Consumer payments have become a “new battleground” for banks, JPMorgan Chase Chairman and CEO Jamie Dimon said Monday (April 7) in his annual letter to shareholders.

Dimon highlighted the evolving competition from FinTech firms as a key concern for the financial industry. He did so in a shareholder letter covering a broad range of topics, including the recent tariffs, geopolitical tensions and economic uncertainties.

The competitive pressures from FinTech companies featured prominently in Dimon’s remarks. He said the emergence of consumer payments as a new battleground is driven by third parties vying for access to banks’ customer data.

While stating that JPMorgan Chase has “no problem with data sharing,” Dimon stressed the importance of proper authorization by customers, fair compensation from third parties for accessing banking systems and clear restrictions on data usage.

“Banks provide fantastic services, and it’s time to defend ourselves — in the public realm or in court if need be,” Dimon wrote in the letter.

Dimon affirmed the bank’s commitment to defending its position in this evolving environment, pointing to JPMorgan Chase’s ongoing significant investments in technology and its ability to compete effectively due to its scale.

Dimon’s letter also noted that the U.S. economy has been resilient, fueled by government spending and past stimulus, but also pointed to potential headwinds such as increasing infrastructure and military expenditures that could lead to stickier inflation and higher rates. He identified geopolitical risk as the firm’s “largest risk,” given the ongoing conflicts and tensions globally.

Dimon advocated for “comprehensive economic foreign policy to win the new global ‘economic war,’” emphasizing the importance of maintaining alliances and competing effectively with nations like China.

He also called for bipartisan commitment to effective domestic policies to drive robust economic growth, addressing issues from education and infrastructure to fiscal and tax policy.

Within JPMorgan Chase itself, Dimon emphasized the constant fight against complacency and bureaucracy, detailing management learnings focused on efficiency, accurate accounting and fostering a strong company culture. He reiterated the bank’s commitment to its essential role in communities, supporting economic growth and serving as a source of strength in difficult times.

Dimon closed his remarks on the economy in the letter by noting his “abiding faith in America — the exceptional strength of our innovative economy and our resiliency.”