JPMorgan is the best-run financial institution in America, someplace between good and unmatched at virtually the whole lot it does. However one problem has been wealth administration.
Its wealth-management providing catering to the “mass-affluent” (learn: medium-rich) has 5,000 monetary advisers managing $630 billion. Evaluate that to 17,000 advisers managing $4.6 trillion at Morgan Stanley, a financial institution one-third the dimensions of JPMorgan and with precisely zero branches that may carry prospects in off the road. Or 19,000 advisers and $3.5 trillion of property at Financial institution of America, which is about JPMorgan’s measurement and with an analogous department community.
To be honest, rivals’ figures embody ultra-rich non-public banking shoppers, which JPMorgan manages individually (extra on that association beneath), so the numbers aren’t fairly apples to apples. However with its sturdy model — which bought even stronger through the regional-banking turmoil — and big community, JPMorgan ought to be greater on this enterprise.
Overlapping shopper segments and inner competitors might have held it again. In 2021, a JPMorgan wealth adviser accused higher-end non-public bankers inside the agency of attempting to poach her shoppers, together with Alex Rodriguez.
And it has appeared at instances to function extra as a advertising machine than a standard funding enterprise. Executives have fiddled over time with the minimal wealth ranges required to be bumped up or down a service stage — in ways in which generally handle to offend the shoppers they’re courting. (Recall my former colleague Emily Glazer’s pleasant 2016 story on how JPMorgan raised the minimal ticket to qualify for its top-tier non-public financial institution and pissed off loads of Manhattan legal professionals.)
“Purchasers have the selection of the adviser they wish to work with, and a few wish to work with a couple of,” a JPMorgan spokeswoman stated.