JPMorgan Chase plans to expand its corporate banking team across Asia next year as it eyes growing business opportunities from intra-Asia trades, the innovation economy and payment services, according to executives of the US bank.
“We aim to add 10 per cent headcount to the corporate banking team across Asia next year,” said Oliver Brinkmann, Asia-Pacific co-head of global corporate banking.
The bank, which operates in 17 markets in the region, is seeing a significant increase in regional trade against the backdrop of economic growth in many Asian countries. The trend is also partially driven by geopolitical headwinds, he added.
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“The velocity of investments has changed,” Singapore-based Brinkmann said in an interview in Hong Kong. “There’s also much more focus on building out a home-based, Asian business for many of the Asian corporates.”
As a result, the bank is investing resources through broader subsidiary banking and country desks to capture emerging growth corridors such as Korea, Japan, India and China.
The JPMorgan Chase headquarters in New York City, pictured on April 17, 2019. Photo: AFP alt=The JPMorgan Chase headquarters in New York City, pictured on April 17, 2019. Photo: AFP>
The additional headcount will be dispersed through the team’s four verticals: large-cap, mid-cap, innovation economy and subsidiary banking.
In subsidiary banking, the majority of the new talent will go into Southeast Asia and India, while in local corporate banking, additional headcount will be added in North Asia, Greater China, Japan, India and Australia, according to Brinkmann.
The expansion follows JPMorgan’s overhaul of its banking businesses earlier this year. Brinkmann assumed the global corporate banking co-head role in the region with Hong Kong-based Kerwin Clayton in April, following an internal reorganisation.
The move aims to help the bank cover clients of all sizes, offer a comprehensive set of wholesale banking products and solutions, and “be as global as possible in a time where companies are becoming more and more international”, Clayton said.
China is five or six years ahead of the game, but it is still contributing to the largest piece of that business, according to Brinkmann (right) and Clayton. Photo: Dickson Lee alt=China is five or six years ahead of the game, but it is still contributing to the largest piece of that business, according to Brinkmann (right) and Clayton. Photo: Dickson Lee>
The innovation economy is a key focus for JPMorgan’s strategy in the region, which is home to more than 500 unicorns, or start-ups valued at more than US$1 billion.
“Fast-growing newer companies’ contribution to the banking industry globally is meaningful and growing,” said Clayton. “Establishing relationships with companies earlier in their life cycle is very important.”
The US bank is keen to offer financial and advisory solutions to founders, investors, start-ups and high-growth companies. China would be a logical destination for such business opportunities.
The world’s second-largest economy is home to 369 unicorns with an average valuation of US$3.8 billion. The total number of unicorns accounts for about a quarter of the global unicorn population, despite its number of newly funded unicorns dropping to 106 last year from a peak of 192 in 2021.
“China is probably five or six years ahead of the game, but it is still contributing to the largest piece of that business and running very fast,” Brinkmann said. “It’s innovating many new technologies that are exported to other parts of the world, and we want to be that cross-border bank when they go outside.”
Another growth engine for JPMorgan’s corporate banking is the payment business, which is on track to generate US$20 billion in revenue for the bank globally, according to Brinkmann. “Large corporates in Asia-Pacific hold about US$8 trillion of cash equivalent, and we can offer secure payment ecosystems for global business operations,” he said.
The bank is using its innovation hub in Singapore, which hosts one of its three global cybersecurity centres and the blockchain-platform Onyx, to streamline payment transactions. The offering has been gaining traction among clients, Brinkmann said.
“Innovative companies have a desire for real-time payments and collections,” he added. “Stability, cybersecurity, efficiency and real-time settlements are all critical factors for treasury management.”
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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