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JPMorgan is expanding its overseas retail banking and has acquired one of the U.K’s leading robo advisors Nutmeg. The acquisition deal has been finalized for an undisclosed fee, and it will complement the lunch of its standalone digital bank brand in the United Kingdom.
JPMorgan is expanding its overseas banking business
The biggest bank in the US by assets under management JPMorgan Chase is expanding its overseas retail banking business. The bank has decided to acquire Nutmeg, one of the U.K.’s largest robo-advisors, for an undisclosed fee.
Nutmeg is one of the largest robo advisory firms in the U.K, with over £3.5 billion ($4.9 billion) in assets under management. The firm offers numerous investment accounts, including general investments, pensions and ISAs.
The acquisition is expected to complement JPMorgan’s standalone digital bank, which is expected to launch in the U.K before the end of the year.
JPMorgan strengthening its position in the market
The bank made the move to acquire Nutmeg after JPMorgan CEO Jamie Dimon noted that they would be more aggressive in searching for acquisitions that would help them add capabilities. JPMorgan Chase hasn’t been as active as its competitors, such as Morgan Stanley, in this area over the past few years.
Morgan Stanley acquired E-Trade and Eaton Vance for $20 billion last year, allowing it to challenge other top investment banks in the United States. Sanoke Viswanathan, CEO of international consumer at JPMorgan, said, “We are building Chase in the U.K. from scratch using the very latest technology and putting the customer’s experience at the heart of our offering, principles that Nutmeg shares with us.”
JPMorgan’s stock has performed excellently so far this year. JPM began trading at $124 at the start of the year, but it is up by over 20% to currently trade above $150. However, JPM’s price is down by 1.4% so far today despite the Nutmeg acquisition news.
This article was originally posted on FX Empire