JPMorgan Chase & Co. (NYSE: JPM) said that internal technology investment projects, like blockchain, big data and robotics, would be part of its “major priorities” in 2016, according to its investment bank head Daniel Pinto.
JPMorgan Chief Operating Officer Matt Zames said that the bank spent about 8 to 9 percent of its revenue in technology development every year. The U.S. biggest bank wants to ensure $9 billion investment in technology in 2016.
“Aggressively pursue the innovative technologies that we have been making investments in,” Pinto said in a memo this week. “Internal working groups have made significant advances this year and will be provided even more freedom to develop market leading platforms in 2016.”
Blockchain is a distributed database based on the bitcoin protocol that maintains a continuously growing list of transactional data records hardened against tampering and revision. With the help of this new technology, the bank can reduce the cost from transactions.
While the bank is making huge investment in technology, it started its job cuts plan. The company is going to cut more than 5,000 jobs by next year to lower expenses. It wants to use these new technologies to increase automation and ease transactions.
JPMorgan may lead the trend for other big banks to introduce technology and automation in their banks. This year many big banks like Citigroup and Morgan Stanley announced jobs cut. Dimon said that “Silicon Valley is coming” and if the banks don’t upgrade themselves, they might be taken over by the big high tech companies.