JP Morgan spent $9.5 billion on tech revamp last year

CEO at JP Morgan, Jamie Dimon, gave shareholders a breakdown of spending on technology in 2016.

JP Morgan spent more than $9.5 billion on implementing technology across the business in 2016, according to chief executive officer, Jamie Dimon.

In a letter to shareholders, Dimon said of the $9.5 billion, approximately $3 billion was dedicated to new initiatives and $600 million was spent on emerging FinTech solutions. 

“One of the reasons we’re performing well as a company is we never stopped investing in technology – this should never change,” he wrote.

The letter explained JP Morgan invests a considerable amount in digital, machine learning and big data technology to benefit its customers with faster, cheaper services and to reduce errors.

Throughout 2016, JP Morgan actively invested millions in FinTech companies and this shows no signs of slowing down.

In February, JP Morgan and NEX Group were among several large institutions to have invested $15 million in desktop applications firm, OpenFin.

OpenFin provides desktop applications to both buy- and sell-side trading platforms, providing market data, news, research and direct trading capabilities.

JP Morgan explained it is currently developing its electronic trading services within its investment bank and asset management business, to offer clients a more ‘robust’ platform.

In March this year, Daniel Pinto, CEO of JP Morgan’s corporate and investment banking (CIB) division, said that changes in market structure could see a potential $5.5 billion in revenue move to electronic execution.

Pinto also highlighted that revenues from electronic trading made up 12% of the $21 billion in total markets revenue the bank made during 2016.