Innovation

JPMorgan Chase to expand startup services with hires

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May 23, 2023

JPMorgan Chase plans to improve its offerings to tech and other startups by bringing on more bankers. The bank has already hired more than 100 employees this year to meet the needs of the innovation economy, according to a report by Reuters.

"As this year plays out with market disruption and the shift in our competitive landscape, we have substantially heightened our new client acquisition," Doug Petno, CEO of commercial banking, JPMorgan Chase, said during the bank's investor day in New York. He also said the bank would add "incrementally higher front and middle-office support" to meet the needs of startups.

This news comes on the heels of the collapse of Silicon Valley Bank, which catered significantly to startups. Following its collapse, many of its startup depositors switched to larger financial institutions such as JPMorgan Chase. The bank was also in headlines earlier in May when it acquired First Republic Bank, as part of a government-backed deal.

"We have seen an influx of companies come to us in the last two months that are looking for a more stable environment," Melissa Smith, head of innovation economy and specialized industries in JPMorgan's middle market banking division, told the news outlet.

Chase aims to offer startups payments, cash management and loans for startups. It has hired on Ashraf Hebela as managing director of innovation economy startup banking and Kelly Belcher as head of climate tech for these services.