American multinational investment bank and financial services holding company, JPMorgan Chase, has disclosed it will spend more than $12 billion on technology in 2002.
The company made this known while reporting its fourth-quarter results. It also revealed that is technology spending plans will see it deploy into use microservices architecture, cloud, and modern engineering practices to accelerate software development.
JPMorgan is also eyeing Artificial Intelligence and machine learning to derive more value out of its data and stressing its commitment to cybersecurity.
Also, the company has acquisition plans which will follow up on recent deals to buy OpenInvest, Nutmeg, and a 75% stake in VW Payments.
JPMorgan will also look into ways it can attract and retain the best technology people in the face of fierce competition for talent.
James Shanahan, an analyst with Edwards while speaking with the Financial Times said, “The global technology spend at around $12bn, that’s an astonishing number. That probably blows away the cumulative dollar value of investment of all the fintechs in the world that are trying to disrupt them.”
The bank has also warned that its increased expenses will probably hit its return on tangible capital equity, prompting its share price to dip and Wells Fargo analyst Mike Mayo to downgrade its stock.
