JPMorgan Chase & Co., an American multinational bank, has decided to acquire OpenInvest, a fintech firm focused on delivering services for values-based investing.
JPMorgan, in a statement, mentioned that OpenInvest was founded in 2015 and supported by Andreessen Horowitz and Y Combinator, among others. However, the terms of the transaction were undisclosed.
The acquisition story
JPMorgan has been involved in a few acquisitions lately, and the recent addition of 55ip follows the OpenInvest deal. This financial technology firm helps investors with reducing their tax liabilities.
These takeovers position the New York-based investment bank to expand its offering to financial advisors playing the primary source of growth in the asset management industry.
With returns in instability due to rock-bottom interest rates and volatility, investors pay close attention to portfolio performance after accounting for taxes. Simultaneously, many are emphasizing the importance of sustainable and socially conscious investing.
The expert’s take
Mary Erdoes, Chief Executive Officer of JPMorgan’s Asset and Wealth Management business, said in the statement, “Clients are increasingly focused on understanding the environmental, social, and governance (ESG) impact of their portfolios and using that information to make investment decisions that better align with their goals.”