Daniel Pinto, co-president of JPMorgan Chase & Co-President: Invests heavily in the payments space and works with small fintech companies

Reporter | Sun Yizhen

Edit |

How will traditional financial institutions respond to the challenges posed by the extensive involvement of large technology companies in the financial business? What opportunities and risks does digitalization bring to the financial system?

"Big tech companies are very good at delivering a good customer experience, and there's no doubt that their entry is bound to have a disruptive effect on financial institutions." On October 23, Daniel Pinto, co-president and chief operating officer of JPMorgan Chase, said at the Bund Finance Summit 2021, "The key question for financial institutions is how to make the services they provide into forms that are easy and acceptable to consumers." Now everyone uses their phones to get everything done. ”

Daniel Pinto divides financial services into two broad categories, one is direct consumer-facing microfinance, which is relatively low in terms of profit complexity, which is largely driven by customer experience, and the other is large financial services for large enterprises, characterized by high compactness, low profit margins, and extreme complexity.

Based on the different characteristics of the two types of financial services, Daniel Pinto believes that the customer experience innovation brought about by digitalization will first have an impact on the field of microfinance.

He further explained that traditional large-scale financial services are not without the possibility of being disrupted by technology, but at present, customers in this field are more inclined to give priority to more experienced and established financial services institutions. "We have noticed that at present, some fintech companies are also making disruptive innovations in the field of large financial services, but we also have confidence in ourselves."

Daniel Pinto said that the advantage of traditional banks lies in the rich user data accumulated over time. "Being able to provide user data provides a superior customer experience on a more granular level than any competitor."

According to its introduction, at present, JPMorgan Chase has made a lot of investment in the payment field and cooperated with some small financial technology companies.

"Small fintech companies are primarily focused on certain market segments and customer segments, where products often have distribution issues, and JPMorgan Has millions of customers around the world. For these companies, our strategy is to cooperate more, which is a combination of cooperation and competition. JPMorgan chases use their solutions and distribute them through our platform. Daniel Pinto said.