JP Morgan Launches Trading App
JP Morgan recently announced its new trading app, “You Invest”, focused on millennials that are interested in investing but don’t want to pay hefty fees. Whereas the Robinhood’s of the world offer a simplistic product at no cost, JP Morgan will leverage its equity research and integrate it into the app for a small fee. Users will begin with 100 free trades and free access to equity research within the app, after which they will begin to pay commission. And while it’s not clear how, JP Morgan has said that users will be able to earn unlimited zero-commission trades. On top of that, You Invest will offer Portfolio Builder capabilities allowing users to set their personal target asset allocation and analyze portfolio performance.
This makes JP Morgan the latest bank to cut trading costs in order to attract young investors that have been switching to Robinhood. Last month, Fidelity Investments eliminated fees on two index funds and Vanguard made 1,800 ETF’s commission-free¹.
Citibank to let customers invest in crypto assets without owning them
According to Business Insider, the bank is introducing “Digital Asset Receipts”, or DARs, as a way to invest in Bitcoin and other crypto assets without taking on the risks and headaches of securely owning them. While Citigroup has not made a public statement, it is believed that they will operate very similarly to American Depository Receipts, ADRs. Citigroup currently offers ADRs as a way for U.S. investors to trade foreign stocks and securities normally restricted to other exchanges.
An inside source explained that the crypto assets will be securely stored and exchanged by the Depository Trust & Clearing Corporation. Known as DTCC, the company exchanges securities on behalf of buyers and sellers and provides security custodial services. If Citigroup follows through, they would be the first institution to apply the ADR concept to crypto assets and allow large asset managers to safely invest in crypto assets – a growing demand from investors. Ultimately, Citigroup’s Digital Asset Receipts would need SEC approval before being made available to asset managers and hedge funds.
China and U.S. Race to Dominate 5G
There has been quite the buzz recently around 5G technology, the next wave in wireless networks promising to deliver speeds up to 100 times faster than 4G. Just as we saw with the advent of 4G, China and the U.S. are rushing to beat each other to market. Due to the incredible speeds that 5G can support, it has the potential to spark massive technological innovation and give countries a serious military edge. For manufacturers, the race to 5G presents an opportunity to make billions in patent royalties. Meanwhile, three of the major cell carriers plan to offer 5G capabilities in select cities later this year, with 5G-supported mobile devices expected to hit the market in early 2019¹.
What does 5G technology mean for FinTech? It brings us a wireless network that supports disruptive technologies such as the Internet of Things, blockchain technology, Big Data analytics, and online payment solutions. More importantly, it will enable the next wave of financial technology that has yet to come.