J.P. Morgan to buy OpenInvest

J.P. Morgan has announced that it will buy OpenInvest, a company that helps financial professionals customise and report on values-based investments.

The FinTech will keep its own brand and be integrated into J.P. Morgan’s private bank and wealth management client offerings.

The terms of the deal have not been disclosed.

Backed by capital from Andreessen Horowitz, Y Combinator, QED, and others, OpenInvest was founded in 2015.

The announcement follows the bank’s recent purchase of 55ip, a FinTech specialising in tax-smart investment strategies through model portfolio.

J.P. Morgan said that over time it will use OpenInvest’s ESG capabilities with 55ip’s investment strategies to deliver customised solutions to private bank and wealth management clients.

"Clients are increasingly focused on understanding the environmental, social, and governance (ESG) impact of their portfolios and using that information to make investment decisions that better align with their goals," said Mary Callahan Erdoes, chief executive, J.P. Morgan Asset & Wealth Management.

Joshua Levin, co-founder and chief strategy officer at OpenInvest, said: "Our partnership with J.P. Morgan combines leading ESG technologies with America's largest bank and the ability to reach nearly half of all American households."

Earlier this month, the bank announced plans to buy London-based investment management company Nutmeg to support its move into the UK retail banking market.

The venture will operate under its consumer brand, Chase, one of the largest consumer banks in the US.

The Chase mobile app will compete with UK challenger banks such as Monzo, Starling and Revolut in an attempt to grab market share from established lenders.

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