What keeps Jamie Dimon awake at night?
What could possibly make a banking titan like Jamie Dimon—whose leadership commands the premium that has turned JPMorgan Chase into the most valuable bank in the world—anxious at times?
It’s usually a confluence of “highly dangerous” and “unpredictable” geopolitical tensions alongside cybersecurity threats, Dimon says in an email interview with the Inquirer. “The biggest [concern] of all is nuclear proliferation,” he adds.
Cybersecurity of the banking system also keeps him on his toes.
“The scale and scope of cyber threats are increasing as attackers grow bolder. We emphasize to our teams the urgency of addressing cybersecurity concerns and establishing robust defenses. And we work with governments to help them protect the population, warn of dangers and develop better international cyberlaws,” explains Dimon, who recently visited the Philippines.
The so-called “Jamie premium” is largely credited for the lofty market capitalization of JPMorgan, which Dimon has led for 18 years. Valued by the market at $583 billion, if JPMorgan were a country, it would be larger than the Philippine economy.
Dimon’s heart bleeds for people caught in the crossfires. The undeclared war between Russia and Ukraine has dragged on for two years; the crisis between Israel and Iran is escalating; and maritime tension between China and the Philippines is heating up. Volatile US-China relationship is likewise a concern.
“We obviously need to work to preserve the interests of our own country and companies, but we also want to see China succeed. In terms of areas of cooperation, we should seek continued engagement, especially on climate, cyber[security], health care and more, where there are significant longer-term benefits,” he says.
“China is important for many of our US and other clients, and JPMorgan can help them achieve their goals there,” he states.
“We are great believers in the future of Asia-Pacific,” he adds.
The Philippines is one of JPMorgan’s largest locations outside the United States by head count, which has reached more than 20,000, including those providing critical business operations support for every division of the bank globally.
Thoughts on AI
“AI (artificial intelligence) is an exciting tool that we’re using to empower our employees, and while it might change some job roles, it will also create new opportunities. As always, we’ll be there to support and retrain and redevelop our people to adapt to these changes,” he says.
“I have immense faith in our employees and their expertise. The real magic happens when they use this technology to come up with innovative ideas for their daily work. We’ve already seen a huge increase in demand for AI tools and I believe they’ll become a natural part of our everyday operations, boosting our efficiency and productivity.”
Since joining JPMorgan in 2006, much has changed in the banking landscape. Dimon steered JPMorgan through a number of crises: the Wall Street-epicentered global financial crunch that had bludgeoned other financial institutions; the harrowing COVID-19 pandemic; and, just last year, the collapse of some large banks in the United States, including First Republic Bank.
“We came out of these crises stronger,” he says.
JPMorgan has consistently outperformed peers. Most recently, net income for the second quarter reached $18.1 billion, up 25 percent year-on-year, on the back of revenues that grew 22 percent to $50.2 billion. It is a market leader in investment banking, financial services for consumers and small business, commercial banking, financial transaction processing and asset management.
But complacency isn’t part of Dimon’s playbook. He says JPMorgan, which does business in more than 100 countries and has people on the ground in more than 60 jurisdictions, will continue to invest prudently and where it makes sense.
“In almost all these locations, we do research on a country’s economy, their markets and their companies; we bank their government institutions and their companies; and we bank multinational corporations, including the US multinational corporations that operate within their borders. We help these countries grow and improve while also strengthening the global economy,” he says.
Investing in technology
And yet, he reckons that recent challenges like the pandemic, Russia-Ukraine conflict, Middle East strife, terrorism and other tensions have led to more complex conditions for many companies, whether related to rates, high inflation, poor regulation, trade, supply chains and more.
“And then there is the continuing technology revolution and the speed of its adoption, which is transforming the behaviors and requirements of customers and, in turn, how our organizations conduct business. As part of this, we have AI, and while we do not know the full effect or the precise rate at which AI will change the business environment, we are completely convinced the consequences will be extraordinary.”
For Dimon, the COVID-19 pandemic helped spotlight the critical role of banks in ensuring the stability and health of economies and enabling companies and individuals to function and thrive during turbulent times.
“COVID also accelerated in many cases the rapid adoption of new technologies and digital interactions with customers and clients around the world,” Dimon says.
“It’s during a crisis that our clients need us most. As a firm, we never stopped doing all the things we needed to do in terms of serving our clients and our communities. We continued to raise capital for our clients, provided liquidity and helped address income inequality through our businesses and community outreach,” he adds.
Asked about the rise of fintechs—some of which have gnawed on the traditional businesses of banks—Dimon sees these entities as both partners and competitors.
“We aim to learn from them to make our services more seamless and competitive, reducing pain points for customers and providing solutions in a much shorter time frame,” he says.
“However, fintechs can’t replicate our scale and expertise in banking and financial services—that’s part of our DNA. Our payments business globally, which we expect to be a $20-billion business, is essentially fintech with a solid foundation,” he notes.
JPMorgan processes $9.8 trillion in payments daily across more than 160 countries and over 120 currencies. It plans to invest $17 billion in technology this 2024, up from $15.5 billion last year.
Big shoes to fill
These days, there’s a lot of buzz on how JPMorgan can possibly fill Dimon’s big shoes—if and when the legendary banker, who is now 68, retires.
“I’m very fortunate and enjoy a very rewarding career. Ultimately, what’s most important to me is making the world a better place. I believe financial services are a force for good. I will always remain passionate about using our resources—our capital, technology and talented workforce—to address critical societal issues,” he says, when asked what else he would like to accomplish.
He says he wants to make sure that JPMorgan remains at the forefront of innovation and excellence.
“And finally, I want to further strengthen our global presence and build on our culture of integrity, knowledge, capabilities and strength,” he says.
For the next generations of bankers aspiring to replicate his path to success, Dimon gives a hint of his secret sauce: “Listening, curiosity—which is a form of humility—taking advice and listening to others, being open to different ideas and perspectives. Make complete and honest assessments of your business, challenge the status quo and recognize long-term trends. You also need a structured decision-making process, giving yourself time to decide and act and understand the benefits and risks of your actions.”
“And you must communicate, get in front of people, have heart, all of which is vital for building trust with employees, clients, stakeholders and even competitors.”
