Yahoo Finance JPMorgan (JPM) to Cater to Innovation Economy of Israel
JPMorgan JPM is expanding in Israel by offering commercial banking services to local technology companies. The company has already hired 10 bankers, to be led by Darya Fuks. The new team, which is part of the company’s Innovation Economy banking division, will provide services to the innovation economy.
In a way, JPM is trying to fill in the void following the collapse of Silicon Valley Bank in March. Silicon Valley Bank was the lender of choice to several local startups and technology firms. Thus, JPMorgan’s foray into this lucrative and critical sector will help deepen its client relationship.
JPMorgan will focus largely on late-stage high-tech companies and offer a wide range of services like capital raising, liquidity solutions and payment management. It will also provide strategic advice to venture capital funds and their portfolio companies. In this regard, the company will face tough competition from UBS Group AG UBS, which offers similar services and further expanded its presence following the acquisition of Credit Suisse.
Combining the resources of both institutions and gaining from the synergies, UBS will provide enhanced global offerings to its clients. The combined entity will enjoy expanded geographic reach and access to higher expertise and enhanced capabilities.
JPMorgan CEO Israel Roy Navon said, “JPMorgan is committed to supporting Israeli businesses, so growing our local footprint and deepening what we can offer clients and individuals in our community is a powerful next step in our story here.”
JPM, which has a presence in the country since 2000, has till now mainly focused on investment banking, private banking and wealth management operations.
JPMorgan’s head of corporate client banking international Andrew Kresse commented, “We see a lot of opportunity to make an impact here, and we have proven that we can help local companies grow their businesses on the global stage.”
JP Morgan has been expanding its innovation banking division for many years. Its acquisition of First Republic Bank will further bolster its presence in Silicon Valley and the technology sector overall.
Shares of this Zacks Rank #3 (Hold) company have rallied 6.8% so far this year against the industry’s decline of 5.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Israel is a world leader in providing all types of support to companies in the innovation economy. Earlier this month, BlackRock BLK signed an agreement to acquire London-based Kreos Capital, a private debt provider.
Kreos Capital is a well-known debt provider that invests in technology and health sectors across Israel and European high-growth companies. The acquisition will further strengthen BLK's position as the global credit asset manager. It is also expected to further expedite its goal to provide clients with a wide range of private market investment products and services.
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