JPMorgan wealth unit creates new field structure for bank-based advisors

A pedestrian passes in front of a JPMorgan Chase bank branch outside Pennsylvania Station in New York Feb. 5, 2020. New York City has for decades talked about improving the neighborhood around antiquated Pennsylvania Station with the kind of development that's invigorated other parts of Manhattan. Real estate billionaire Steven Roth is finally seizing the moment. Photographer: Bess Adler/Bloomberg
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In a bid to grab a bigger share of the wealth management marketplace, JPMorgan Chase is creating a new field structure for its bank-based financial advisors.

The firm’s Chase Wealth Management will be comprised of three divisions and 18 regions, according to a memo sent to employees this week by the unit’s CEO, Eric Tepper. It was previously part of the consumer bank.

The restructuring follows changes to its upper leadership late last year and new plans to grow its wealth management business which has approximately 5,200 financial advisors in total.

In January, JPMorgan executives outlined to shareholders how they intended to gain a greater share of the wealth management marketplace, emphasizing a hiring spree, new leadership, big digital investments and possibly acquisitions. Executives said they saw an opportunity to land more high-net-worth clients, particularly those who already have a banking relationship with JPMorgan.

Approximately half of the estimated 22 million high-net-worth individuals with $1 million to $10 million are already banking with JPMorgan Chase, according to the company’s January presentation. But only 5% use the firm for managing investments.

Late last year, the firm reorganized its wealth management businesses into a single unit under Kristin Lemkau, who now oversees a wide range of operations, including the firm’s high-end J.P. Morgan Securities business, online investing platform and bank-based brokerage force.

In January, she unveiled changes to her leadership team. And last month she hired former Merrill Lynch executive Phil Sieg to provide JPMorgan’s advisors with improved tools and resources.

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