Jamie Dimon, CEO JP Morgan Chase
David A. Grogan | CNBC
JPMorgan Chase CEO Jamie Dimon watched as a new race of fintech players, led by PayPal, Square and tech giants around the world, exponentially increased users and market value.
His message to the management team of his $ 3.4 trillion bank bailout: Be scared.
“Absolutely, we should be afraid – less than that,” Dimon said in a conference call with analysts on Friday. “We have a lot of resources, a lot of very smart people. We just have to become faster, better, faster … As you look at what we did, you would say that we did a good job, but the others did a good job as well. “
Dimon’s direct assessment answered questions from analysts, including Mike Mayo of Wells Fargo, who pointed out that with rich, technological assessments, fintech players have “stepped” on traditional banks in recent years.
Dimon said he sent his deputies a list of global competitors and that PayPal, Square, Stripe, Ant Financial, as well as US technology giants, including Amazon, Apple and Google, were names the bank should follow. Rivals are also clients of JPMorgan’s commercial and investment services in many cases, he added.
The competition will be particularly tight in the world of payments, he said: “I expect to see very, very tough and brutal competition in the next 10 years,” Dimon said. “I’m waiting to win, so help me, Lord.”
Dimon added that in some cases, the new players were “examples of unfair competition”, about which the bank would eventually do something. It included players who take advantage of richer debit cards from small banks and Dimon companies accused of not taking precautions against money laundering.
He specifically called Plaid, the payment start-up whose acquisition by Visa recently collapsed, telling “people who misuse the data they were given, such as Plaid.”
Plaid CEO Zach Perret declined to respond directly to the indictment during an interview with CNBC’s David Faber, adding that Plaid spends time with the bank in a partnership.
– Dawn Giel from CNBC contributed to the report.