Daily Management Review

JP Morgan Eyes Silicon Valley Talent As It Builds A New Campus There


JP Morgan Eyes Silicon Valley Talent As It Builds A New Campus There
US banker JP Morgan Chase wants to attract more talent from the Silicon Valley and is planning to open up a fintech campus in Palo Alto, California, for this purpose.
It is expected that there would be over a 1000 employees at the campus which is set to be begun early next year and get completed by 2020, said the bank in a statement. It said that the new project would make it easier for employees across business lines to host events and collaborate on new products and services.
“The addition of a first-class location is a key step for growing our presence in the Bay Area,” Bill Wallace, head of digital, consumer and community banking at JPMorgan, said in the statement. “This is an important market for us, and we’re looking forward to expanding our footprint and attracting more of the area’s top talent.”
Fintech is one area of business that JPMorgan has been eyeing to dig deeper into. As a part of its this strategy, the bank had acquired the startup WePay last year. This startup was founded in 2008 and the acquisition was aimed at aiding faster payment acceptance for the lenders over 4 million small-business customers. Further, the bank has also formed partnerships with a fintech company Bill.com and On Deck Capital Inc. The bank further said in the statement that the Palo Alto campus will be home to over 275 employees of WePay together with the chief executive officer and co-founder of the startup Bill Clerico.
The bank further said that most of the employees who would be deputed at the new Silicon Valley campus would work for JPMorgan’s Chase Merchant Services division which is the second largest processor of card payments for merchants in the United States. In addition to the existing employees of WePay who are to be stationed at the new campus, the bank would also recruit hundreds of people to work at the new office.
The bank this year had announced during its February conference for investors and stock analysts about its intention to focus on the area of digital products in a major way.
JP Morgan is the largest US bank in terms of assets and their deposit and loan business would benefit more if it is able to handle more payments for its consumers and companies.
The bank accepted the higher costs that it would have to face for operating from the Silicon Valley but is willing to take up the challenge because it feels that it would be able to get the best local talent of software engineers, said Matt Kane, chief executive of JPMorgan’s merchant services division. Those who would be recruited at the new campus would augment the specialists of the payments industry who are already working with the bank mostly at its Plano, Texas and Tampa, Florida.