JPMorgan Plans to Bring on 1,000 Private Bankers
JPMorgan Chase intends to expand its advisor force by 38%, the company’s head of wealth and asset management said Tuesday.
The firm plans to bring on about 1,000 advisors to its U.S. private banking unit, Mary Callahan Erdoes, CEO of JPMorgan Asset Management, said at the Morgan Stanley Financial Services conference in New York, according to AdvisorHub.
Erdoes also said the company’s share of investors with a net worth of between $3 million and $10 million is “very small,” according to AdvisorHub. She also didn’t address growth plans for the company’s retail brokerage unit, which has fewer than 500 advisors who get paid based on total fees and revenue, nor a timeframe for bringing on the new hires, the website writes.
Private bankers at JPMorgan receive salaries and bonuses, meanwhile, according to AdvisorHub. In all, JPMorgan had 2,606 “wealth management client advisors” at the end of 2017, about 100 more than at the end of 2016, the website writes.
JPMorgan’s wealth manager count is far behind those of Bank of America, the parent company of Merrill Lynch, and Morgan Stanley, which have been 15,000 and 18,000 brokers and private bankers, according to AdvisorHub. But wirehouses, including Merrill Lynch, Morgan Stanley and UBS, have all cut down on recruiting in recent months, the website writes. Speaking at the same conference as Erdoes, Morgan Stanley CEO James Gorman said his firm plans to use technology to boost its brokers’ productivity and efficiency rather than recruit more advisors, according to AdvisorHub.
JPMorgan isn’t alone in taking the opposite tack: Goldman Sachs CEO Lloyd Blankfein said in February his firm plans to expand its wealth management division’s broker ranks by 30%, to around 900, according to AdvisorHub.