THE NATIONAL INSTITUTE OF

ENGINEERING, MYSURU
(An Autonomous Institute under VTU, Belagavi)

Project Report
On

J p Morgan Chase and co

SUBMITTED TO
DR. YUVARAJU B N
Professor
Department of Computer Science and Engineering

SUBMITTED BY
Sklita Buthello
4NI20CS104, CSE 5TH B

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 THE NATIONAL INSTITUTE OF ENGINEERING
Mysuru-570 008
2022-2023
TABLE OF CONTENTS

Sl. No Contents Page

no.
1. Introduction 3

2. History 4

3. Mission and Vision 5

4. CEO, Policies and Advancing Opportunity 6

5. SWOT Analysis 7

6. IT Application and their success 8

7. IT Strategies and Current Market Position 10

8. Captive Company and Organizational Chart 11

9. Conclusion 12

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 Introduction

JPMorgan Chase & Co. is an American multinational investment bank and financial services
holding company headquartered in New York City and incorporated in Delaware.

As of 2022, JPMorgan Chase is the largest bank in the United States, the world's largest bank
by market capitalization, and the fifth largest bank in the world in terms of total assets, with
total assets of US$3.774 trillion. Additionally, JPMorgan Chase is ranked 24th on the Fortune
500 list of the largest United States corporations by total revenue. It is considered a
systemically important bank by the Financial Stability Board.

As a "Bulge Bracket" bank, it is a major provider of various investment banking and financial
services. It is one of America's Big Four banks, along with Bank of America, Citigroup, and
Wells Fargo.[7] JPMorgan Chase is considered to be a universal bank and a custodian bank.
The J.P. Morgan brand is used by the investment banking, asset management, private banking,
wealth management, commercial banking, and treasury services divisions. Fiduciary activity
within private banking and private wealth management is done under the aegis of JPMorgan
Chase Bank, N.A.—the actual trustee.

The Chase brand is used for credit card services in the United States, and the bank's retail
banking activities in the United States and United Kingdom. Commercial Banking at JPMorgan
Chase operates under both the Chase and J.P. Morgan brands. The bank's corporate
headquarters are currently located at 383 Madison Avenue in Midtown Manhattan, New York
City, since the prior headquarters building directly across the street, 270 Park Avenue, was
demolished and a larger replacement headquarters is being built on the same site.

The current company was originally known as Chemical Bank, which acquired Chase
Manhattan and assumed that company's name. The present company was formed in 2000, when
Chase Manhattan Corporation merged with J.P. Morgan & Co.

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 History

JPMorgan Chase, in its current structure, is the result of the combination of several large U.S.
banking companies since 1996, including Chase Manhattan Bank, J.P. Morgan & Co., Bank
One, Bear Stearns and Washington Mutual. Going back further, its predecessors include major
banking firms among which are Chemical Bank, Manufacturers Hanover, First Chicago Bank,
National Bank of Detroit, Texas Commerce Bank, Providian Financial and Great Western
Bank. The company's oldest predecessor institution, The Bank of the Manhattan Company,
was the third oldest banking corporation in the United States, and the 31st oldest bank in the
world, having been established on September 1, 1799, by Aaron Burr.

Recent History: In 2021, J.P.

Morgan funded the failed attempt to
create a European Super League in
European soccer, which, if
successful, would have ended the
meritocratic European pyramid
soccer system. J.P. Morgan's role in
the creation of the Super League was
instrumental; the investment bank
was reported to have worked on it for
several years. After a strong
backlash, the owners/management
of the teams that proposed creating
the league pulled out of it. After the attempt to end the European football hierarchy failed, J.P.
Morgan apologized for its role in the scheme. JPMorgan Chase CEO Jamie Dimon said the
company "kind of missed" that football supporters would respond negatively to the Super
League.
In September 2021, JPMorgan Chase entered the UK retail banking market by launched an
app-based current account under the Chase brand. This is the company's first retail banking
operation outside the of United State.
In March 2022, JPMorgan Chase announced to wind down its business in Russia in compliance
with regulatory and licensing requirements. On May 20, 2022, JPMorgan Chase used
blockchain for collateral settlements, the latest Wall Street experimentation with the
technology in the trading of traditional financial assets.

In September 2022, the company announced it was acquiring California-based Renovite

Technologies to expand its payments processing business amid heavy competition from fintech
firms like Stripe and Ayden. This comes on top of previous, similar moves of buying a 49%
stake in fintech Viva Wallet and a majority’s sake in Volkswagen's payments business, among
many other acquisitions in other areas of finance.

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 Mission and vision

MISSION:
The mission statement of JPMorgan Chase & Co is “To be the best financial services
company in the world” ("JPMorgan," 2013).
The statement indicates how determined this corporation is when it comes to constantly
improving its approaches to business. It has the following parts:
1. Distinguished services
2. Global Reach

The company satisfies the first part of its mission statement by offering a wide range of
investment and financial services. JPMorgan has progressively been reinventing its business
approaches through time to adapt to the changing landscapes. This is what has enabled it to
master the art of delivering applicable solutions while contributing to social growth as well.
For the second part, JPMorgan shows that it has outgrown the U.S. borders due to its global
influence. Today, it is a multinational entity rather than a national one.

VISION:
According to its website it states, “At JPMorgan Chase & Co, we want to be the best
financial services company in the world. Because of our great heritage and excellent
platform, we believe this is within our reach” is the company’s vision statement
("JPMorgan," 2013).
The statement outlines what the company wants to be and known for. This statement has the
following main parts:

1. Being the best

2. Create a winning culture

In the first part, JPMorgan confesses its obsession in perfecting all its business operations to
deliver the best services for its customers. In the second one, this company recognizes that it
can only achieve such high standards by making winning its norm or culture.

Core Values:

JPMorgan core values comprise “Fairness, integrity, and Responsibility.”

To remain at the top in its industry since 1871, this company needed a strong foundation.
These core values have propped JPMorgan for years, giving it the support, it needs to constantly
overcome any business challenges and grow into the multination entity it is today.

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 CEO

"Business has a responsibility to partner with policy,

business and community leaders to create an
economy that works for more people."
- Jamie Dimon,
Chairman and CEO, JPMorgan Chase & co

Policies
The JPMorgan Chase Policy Centre develops and advances sustainable, evidence-based policy
solutions to drive inclusive economic growth in the U.S. and around the world. It is powered
by the firm’s global business resources and expertise, including data, research, talent and
philanthropic investments. The Policy Centre works with policy, business and community
leaders to drive effective solutions at all levels of government.

Second Chance Agenda: The first focus area for the Policy Centre is advocating for federal and
state policy changes to remove barriers to employment for people with criminal backgrounds.
One in three Americans have an arrest or conviction record, creating significant barriers to
employment and economic opportunity for a substantial number of working-age adults. That’s
why JPMorgan Chase has expanded its commitment to giving people with criminal
backgrounds across the U.S. a Second Chance by supporting their reentry into the workforce,
community and local economies.

Advancing Opportunity
Business has a vital role to play in driving inclusive economic growth. This is why JPMorgan
Chase has a long history of collaborating with government, civic and local leaders to drive
public policies that advance the well-being and resiliency of our communities. The JPMorgan
Chase PolicyCenter builds on our existing business and philanthropic investments and
advances the Statement on the Purpose of a Corporation released by the Business Roundtable.

JPMorgan Chase’s long-term, significant investments in key pillars of opportunity, as well as

the insights into the global economy and labor market create a significant body of knowledge
and insights about how to address some of the most vexing social and economic challenges
facing our communities in a fast-changing global economy. The PolicyCenter will leverage
JPMorgan Chase’s convening power to create innovative partnerships and identify gaps in
research and foster an actionable policy dialogue among key academic, nonprofit and business
partners.

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 SWOT ANALYSIS

Strengths: JPMC flaunts a huge capital base which ensures stability and empowers it with the
choice of investment in required domains. It utilizes Capital Risk Management to mitigate risk
and strengthen its market position. It offers financial services to nearly 50% of US households,
80% of Fortune 500 companies, and 60% of the world's largest pensions and central banks.
The B2C banking division of JPM has 5,640 branches and 19,220 ATMs (and counting). One
of the largest credit card issuers with over $1288 in credit card loans and has good geographical
division to cater its globally distributed client base.

Weaknesses: JPMC's 70% of total revenue is generated from US market and this
overdependence caused decline in financial performance in FY2007. Net income declined to
$15,920M in FY2007 compared to $18,285M in FY2006. It also suffers losses on outstanding
mortgages and related obligations as the credits are not fully recovered.

Opportunities: JPMC has a positive future outlook in terms of emerging global market
economies and is reported to have huge inflow of funds. The company has taken several
strategic decisions which enable it to enjoy fruitful opportunities in coming future.

Threats: Govt. and Bank governing organizations' stringent policies pace as a threat to most of
the Financial Institutions. JPM is under the Basel III Norms on Capital Requirements which
mandates it to hold more capital, carry more liquid assets, and reduce leverage. This ensures
that banks hold more capital, which will limit the amount of money they can lend (less interest
eamed), but also reduce the risk of insolvency given many loan defaults. Hence, Basel t reduces
Insolvency risk but in turn does not let the FI to fully utilize its capital.

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IT applications and their success

JPM's financial services are entirely driven by IT at the backend. For a competitive advantage
and to provide differentiated services, the technology of JPM has developed business tailored
applications to provide the special needs of JPMorgan's running business. The customized
applications have been fine tuned to provide requisite solution and utilize optimum resources
& deliver high-end performance as per JPM's IT infrastructure.

JPM believes that technological advancement is crucial for its success and it invites global
technologists with the line, "Technology ignites our business. Be the spark." In order to be a
part of JPM and drive its business with cutting-edge technology. Some of the applications
which have been developed and being executed by JPM's tech team to support its business are:

➢ Athena (Investment Banking Technology): Athena is a risk management, analysis

and trade management tool which provides a common platform to achieve effective risk
analysis and risk mitigation. As it has been built by JPM's technology team, the in-
house analysts have provisioned solution for commonly occurring risks in trades.
Supports custom development of trading models as per the need of JPM's subsidiaries
or its clients. It comes with a framework namely Reactive Athena which helps to
develop custom applications for algorithmic trading, simulations etc. Athena has helped
JPM by simplifying operations and eliminating redundant processes, which leads to
increased understandability and lower costs.

➢ CBB (Compute Back Bone): It is a scalable internal cloud computing service

specifically designed by J.P. Morgan technologists to allow developers to rapidly test
and scale computationally resource demanding applications by utilizing distributed
cloud computing technology. JPM utilizes CBB to test its data centralizing, trade
monitoring and e-Commerce applications before actual deployment.

➢ ERTRS (Equities Real Time Risk Systems): It provides the ability to price and risk
manage accurately in real-time, incorporating the latest market data. Using high-
performance computing infrastructure and software, these systems give even the most
complex of businesses the information they need to react quickly, providing a better,
faster, and more accurate service to customers that allows them to make the most of a
fast- changing marketplace. JPM uses ERTRS to allow in-house traders to seamlessly
price new customer deals and book the transactions in real time. The ability to track
fast markets allows hedging the funds more effectively and reacting quickly
to market changes.

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 ➢ Empire (Fixed Income Web Analytics): It is a suite of web applications that JPM uses
to visualize and analyse financial data within Fixed Income capital markets. It provides
charting, analysis and monitoring 24x7 of capital markets. Together with DataQuery™
(application for analysing & charting of historic financial data), the system supports the
review and display of data across multiple platforms and software packages, including
web viewing, desktop clients, Excel export and provision of data through an API for
other systems and applications.

Empire being a real-time web-based platform helps the JPM analysts and traders to
monitor market activity and perform analytic calculations/run trade analysis. Powered
with time-series database technology with distributed architecture (Vertica"), Empire
becomes one of the crucial applications for real-time market monitoring for JPM and
its subsidiaries.

➢ Emerging Markets Open Blotter: It is a web-based application that allows Emerging

Market (EM) traders to trade various EM products. Open Blotter was developed to
solve the existing limitations of multiple local solutions, which leads to increased
complexity and declines productivity.

Since, J.P. Morgan trades in 17 different EM countries, software deployment was a very
cumbersome task because of requirement of physical presence at the centres for bug
free deployment. It allows sending many trade types into multiple trading systems from
a central one-point location. Thus, decreasing complexity and removing hassle of
trading from multiple systems.

➢ Investment Banking Intelligence Engine: It is a data management platform that JPM

uses to collect, conform, calculate, distribute and report on client-related data and a
huge collection of finance-based metrics for the Wholesale Bank.

The platform provides business users and company leadership with mission-critical
business metrics, delivers measurable business benefits. It plays an important part in
the strategy of the Wholesale Bank and the Global Investment Bank. IBIE is the Master
record for important client profitability measures (e.g., ROE, Rol) used by the balance
sheet committee and in client prioritization process. Populating large data marts was a
challenge because of distributed DB and huge amount of data presence, but IBIE
utilizes Vertica DMBS which enables to derive 300-500 financial attributes in a
viewable window. Thus, reducing operational time and adds more visibility of data for
the analysts. This allowed JPM to be more agile and take strategic decisions in a timely
manner, to robustly adjust to changing market conditions and competitive pressures,
and to improve overall experience for its clients.

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 IT strategies and utilization

JPM's successes in the 828 field are quite impressive and can be directly supported by the fact
that in FY2013 the company had a net margin of 33.8% and reported interest income of
$12,860M for the Q2 of FY2014. JPM being an IT driven giant, invested $88 in IT (FY2013).

QuickPay™ and QuickDeposit: Providing computerized deposits (QuickDeposit) and

payments (QuickPaylo), integrating online and mobile transactions, integrating global clients'
international transactions, maintaining integrity and security of financial data etc. is a huge task
being carried out by JPM's technology team.

The IT contract with IBM: JPM had a $5B contract with IBM under which it was outsourcing
all its IT management and maintenance to IBM. But soon after the acquisition of Bank One,
JPM realized that it would be ideal to utilize Bank One's existing 3000 IT workforce for
expanding and creating an in-house IT department. This led to premature expiration of the
contract as JPM realized IT as an integral part of its core business & cancelled the outsourcing.

Awards and recognitions for IT advancement: The Technology Business Development team
at JPM ensures that IT and the business are cohesively connected to the latest and flexible
technology ecosystem. This includes various awards for the technological advancement JPM
brings in for its clients and a smooth business flow: Chase #1 among global banks in Forrester
Research's 2013 Global and U.S. for Mobile Banking Functionality Rankings, it received "Best
in Class: Mobile Banking" title for 2011 from Javelin Strategy & Research and it also bagged
#14 in Institutional Investor's 2019 for using data visualization technology which in the words
of Ben Sylvester (Asset Manager, JPM) gives traders a research and development environment
in which they can input live orders and think about how to model their next move."

CURRENT MARKET POSITION

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Service based Cum captive company

JP Morgan Chase & co is called as captive company as this technology company is

subsidiary to actual company bank.

JP Morgan which provides financial services, offering solutions to the world's most important
corporations, governments and institutions in more than 100 countries. For example, any
acquisition or merging analysis is done by the JP Morgan for many companies. However,
they do need software's and they develop it in their own development centre like Bangalore.
So, it’s not a product company, software service company. It isn't responsible for (and doesn't
provide) any products, services or content at this third-party site or app.

ORGANIZATIONAL Chart

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 Conclusion

In a fast-moving and increasingly complex global economy, JP Morgan Chase & Co’s success
depends on how faithful principles they adhere to their core principles: delivering exceptional
client service; acting with integrity and responsibility; and supporting the growth of our
employees.
JP Morgan Chase & Co company hence is a leading global financial services firm with assets
of $2.6 trillion and operations worldwide. Their rich history spans over 200 years. They are a
leader in investment banking, financial services for consumers and small business, commercial
banking, financial transactions processing and asset management.

JP Morgan Chase is undertaking significant, long-term and coordinated efforts to expand

access to opportunity for more people. These include bringing their business, data and expertise
to support their employees and communities around the world.
JPMorgan Chase is working to advance economic opportunities and the long-term health of
communities across the world, through their skilled global workforce, expertise, resources and
collaboration with expert partners.

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