Tech

Jamie Dimon: JPMorgan spent nearly $10 billion on tech last year

Jamie Dimon, chief executive officer of JPMorgan Chase & Co. at the World Economic Forum in Davos, Switzerland.
David A. Grogan | CNBC

JPMorgan CEO Jamie Dimon said the bank spent $9.5 billion on technology in 2016 and has plans this year to introduce products for digital banking, online investment advice and electronic trading.

In his annual letter to shareholders on Tuesday, Dimon said the bank is also "collaborating with some excellent fintech companies to dramatically improve our digital and other customer offerings."

Among the leading bank executives, Dimon has established himself as the biggest presence in San Francisco and Silicon Valley, making regular trips West to meet with tech executives and venture capitalists. He made headlines in his shareholder letter two years ago, warning investors that "Silicon Valley is coming."

Rather than view potential banking disruption as a threat to JPMorgan, Dimon has embraced new technologies. About $3 billion, or almost one-third, of last year's investment went to "new initiatives," including $600 million on fintech solutions and projects.

Dimon highlighted partnerships with emerging tech companies like Zelle for consumer payments, Roostify for online mortgages, TrueCar for auto finance and On Deck Capital, which provides loans to small businesses.

The JPMorgan CEO also took a swipe at the U.S. immigration system and how it hurts this country's ability to compete globally. Dimon said that about 40 percent of people receiving advanced degrees in science, technology engineering and math at American universities are from other countries. Yet they have no legal way to stay when they're finished with school.

"We are forcing great talent overseas by not allowing these young people to build their dreams here," Dimon wrote.