JPMorgan commercial bank expands startup focus with new hires

First Republic Bank

22/05/2023 19:43

By Nupur Anand and Lananh Nguyen
       NEW YORK, May 22 (Reuters) - JPMorgan Chase & Co  JPM.N 
is beefing up its commercial banking business that caters to
tech startups and other early-stage companies, the company said
on Monday.
    The largest U.S. lender plans to add staff after it hired
more than a hundred bankers this year to serve companies in the
so-called innovation economy in sectors such as technology,
e-commerce and life sciences. 
    "As this year plays out with market disruption and the shift
in our competitive landscape, we have substantially heightened
our new client acquisition," Doug Petno, JPMorgan's CEO of
commercial banking, said in remarks at the bank's investor day
in New York on Monday. 
    To accommodate the growth, "we're adding incrementally
higher front and middle-office support," he added.
    The business, which has more than 300 bankers, has benefited
from recent banking turmoil sparked by the collapse of Silicon
Valley Bank in March. The failed lender catered to startups and
other venture capital-backed firms, and many of its depositors
sought safety in larger institutions such as JPMorgan.
    Two other regional lenders were subsequently seized by
banking regulators, including First Republic Bank, which
JPMorgan bought earlier this month.
    JPMorgan's broader commercial bank has more than 18,000
clients, including mid-sized businesses and corporations,
government entities and non-profits and more than 33,000 real
estate investors or owners.
    "We have seen an influx of companies come to us in the last
two months that are looking for a more stable environment," said
Melissa Smith, Melissa Smith, head of innovation economy and
specialized industries in JPMorgan's middle market banking
division.
    The business aims to provide startups with basic account
services such as payments, cash management and loans before they
grow to a size that requires more complex advisory work, such as
raising capital through equity or debt offerings. 
    It also aims to expand overseas to serve early-stage
companies in the United Kingdom, Europe and Asia.

 (Reporting by Nupur Anand and Lananh Nguyen in New York;
Editing by Conor Humphries)
 ((Nupur.Anand@thomsonreuters.com; +1 646 240 2975;))