# Jamie Dimon Annual Shareholder Letter Notes & Takeaways

**Published by:** [jelca thinks](https://paragraph.com/@jess/)
**Published on:** 2022-04-11
**Categories:** fintech
**URL:** https://paragraph.com/@jess/jpm-letter

## Content

Letter from April 4, 2022High Level NotesGlobal trendsWages rising, inflation rising to cool overheated economy, consumer confidence declining despite rise in consumer spend, global slow down from the war, no more quantitative easing, more Fed hikes that could increase volatilityUS economy still very strongAmerican leaders to focus on being bi-partisan and R&DUS gas prices pushed to all time high, gas shortages, global energy system is weak as exposed by the warHuge push for American global leadershipRole of banks in financial services is decliningBank share of mortgage originations from 91% to 32%Bank share of leveraged loans from 46% to 13% in last 20 yearsNeobanks have 50mm users in the US at LEASTM&A / consolidation expected for the 4k+ small banks in the USJPMC has outperformed for 2 decadesBoth market and competitorsCorporate lending is the majority of group lendingOnly GS outperforms on costs and RoEJPM is Investing in people$2.5bn / $6bn of JPM spend is on people for RETENTIONSalary is not enough, better tools are neededTalent warJPM is Investing in acquisitionsJPMC is actually entering new markets instead of exitingGS is the only other major bank that is pursuing more geographic expansionJPM is Investing in tech but must continue to growJPMC has spent $5bn on acquisitions on 18 monthsFocused on global retail footprint and cloud migration1000+ APIsAdding 25% to capex à real execution and commitment here!Focus on leadershipJamie Dimon is a thought leader – track record and thought leadership speaks for itselfPeople want to stay at JPM actually, unlike cough cough GSTakeaways & CommentaryBenefits of having a massive balance sheetJPM is diversified its BS across payments, lending, cap markets, retail, etc.Diversity is key to scaling and hedgingBuild a strong foundation and executeBanking is the bread and butter for big companies like JPM and CitiJPM has improved, however, other parts such as payments, currency support, internal opsE.g. Liink = bank network to share info about SWIFT --> increase payments speed with fewer failuresE.g. JPM still focused on building its own coin. Still piloting and grinding. Other banks have ceased.All these slow progresses are building towards long term growth in market share and building a competitive edge against and with fintechsFintech = biggest threatKind of epic that they actually address this and are actively trying to keep up and competeMost banks have given up spaces in low income customers, BNPL, etc. to fintechs. Or worked with Apple Pay to get access to more customers but at a cost of % revenueJPM launched a UK Chase checking account and attempted Finn by Chase although that did not work outI like his call for another Marshall plan for energyOG was in 1948 to help Western Europe post WW2 to ensure energy securityCalling Europe to become energy independent from RussiaWorld to transition to lower / zero carbon energyNeed a plan not just fake empty words. Who knows what will happen here but better to say something than nothing.State of regulation unfairly benefits fintechs… don’t really agree with this? It depends on how you look at it I guessBanks have more regulatory burden than fintechs. Yes, lending as moved into shadow banking and banks have tons of compliance stuff to do.Criticizing the Durbin amendment (banks <$10bn assets can boost interchange revenue)Durbin allowed neobanks to boostrap. E.g. Varo, Chime.Gave lower income customers a better product more suited for them. Helped increase financial inclusion. Objectively a good thing for consumers.Neobanks can be good incumbent bank customers too.JPMC has adapted by working with fintechs, trying to build more fintech products, and treating fintechs as customersSo basically yes fintechs have gotten some favorable regulation. But unfairly is kinda much don’t you think? Incumbent banks play in a different field and have been around for decades if not centuries. The standards should not be the same.Weird Flex on APIs (JPM has 1000+)Quality > Quantity of APIs, okay?But yes having APIs is very tech forward and I really laud JPM for developing them to promote open bankingTL;DRWhere JPM is goodActually investing in tech and the worldActually investing in its peoplePutting out thought leadershipThinking long term not just about quarterly bottom lines, seems less lip service than other big banksWhere JPM has gapsAPIs – quality over quantity. Flexing 1000 APIs isn’t really a huge flexCrypto / defiFintechs and banks consider to working together in partnership or customer capacities – try to not be enemies because both sides are not going away

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