JPMorgan Chase Launches Robo-Adviser

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This week, JPMorgan Chase & Co is launching a lower-cost computerized investment management tool and intends to begin offering the “robo-adviser” to clients as early as March.

On Wednesday, the company is set to file the required disclosures with the U.S. Securities and Exchange Commission (SEC) for permission to begin testing the service.  The goal is to offer “guidance and advice for a broad range of clients, whether you have a few thousand dollars, or more,” said Kelli Keough, head of digital wealth management.

The service is most recent of online investing tools dubbed robo-advisers, that financial firms offer as an inexpensive way to obtain basic advice as well as automated portfolio management.  This concept should attract those who do not have enough funds to make individual personal management sensible.

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Financial companies including Morgan Stanley, Wells Fargo and Bank of America’s Merrill Lynch have trailed fintech firms like Betterment in regard to what is offered.  Basic service fees range anywhere between 25 to 50 basis points each year, or $2.50 to $5.00 for every $1,000 invested, which is much less than a financial adviser.

Keough also added that JPMorgan intends to set its fees by March for the public. The company intends to also decrease the $5,000 minimum investment while during testing with its employees. “We are exploring and testing a variety of different pricing mechanisms,” said Keough.


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Last year, Chief Executive Officer Jamie Dimon had stated that the financial institution may offer the service as part of a package or even free of charge.

JPMorgan is the largest U.S. bank by assets, with more than 50 million customers that hold consumer banking and/or credit card accounts. The company had developed the service in-house with InvestCloud, a financial software firm that last year JPMorgan hired and invested into for the improvement of its online, mobile banking as well as investment offerings. Keough said that investing into the automated service is only part of a $300 million commitment by Dimon for improved technology for its asset management products.



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