J.P. Morgan, a New York-based investment banking company, has launched In-Residence. This new program for fintech startups aims at helping them overcome some of the industry’s unrelenting challenges. The firm joins several other traditional financial institutions that have already partnered with their smaller and newer competitors, with the latter hoping to gain unique experience from the former.
The program’s design is that fintech startups will join the bank and use its systems, facilities and expertise for a period of six months. On the other hand, startups will retain their innovations and companies.
In-Residence is more unique than those of other banks. Instead of letting fintech hopefuls work in a lab, they’ll be working side by side with the J.P. Morgan bankers. The selected fintech participants are likely to start working out of J.P. Morgan offices in either New York City or London, each working closely with departments that match their areas of speciality.
At the end of the residency period, J.P. Morgan can decide to invest in a startup, or help it stand on its own two feet and gain credibility. Another possibility is that the idea may fail to develop further – a likely outcome for some startups.
J.P. Morgan is also using the program as a chance to integrate these fintech startups in its bank operations. The bank may offer equity to some of these startups to help them develop their ideas into products and scale them to the financial industry.
Daniel Pinto, CEO of Corporate and Investment Bank of J.P. Morgan, said, “Our industry is going through a transformational time, driven by competition, regulation, and advancements in technology. As a leading global bank, we are committed to driving industry change by investing heavily in internal development, but also by collaborating with the talent of determined, young startups.”
Learn why VCs need to participate in online investing.
Nestled on a private island, One&Only The Palm Dubai is included in my list of the Top 10 Dubai boutique resorts. Read on.
Find out how to grow your business over tea in NYC.