The traditional role of an investment banker typically involves advising clients on deals and financing opportunities. Recently, however, JPMorgan's bankers noticed an increasing demand from clients for more information, such as insights into the bank's artificial intelligence strategies and cybersecurity practices.
In response, Chairman and CEO Jamie Dimon proposed a new initiative, formalizing a group dedicated to sharing JPMorgan's proprietary strategies with select clients. Dubbed 'Special Advisory Services,' this new initiative officially launches on Monday, under the leadership of Liz Myers, who also holds the position of global chair of investment banking.
Myers, in an interview with CNBC, stated, "These capabilities are on par or better with some of the specialized consulting firms out there. We believe it could enhance the effectiveness of C-suite executives in their roles, allowing them to learn from our best practices."
JPMorgan identified various adjacent capabilities it would offer, spanning areas such as investor relations, real estate selection, health-care benefits, and technology procurement. Initially, there won't be any charges for these services. However, should a client request a more extensive or ongoing service, discussions around a fee structure could occur.
The intention is to offer these services to clients who either have or aspire to have deep, long-term relationships with JPMorgan. According to a company press release, these clients could include "companies considering JPMorgan as their lead IPO adviser, long-standing clients engaged in significant transformational deals, or mid-sized companies aiming to make JPMorgan their primary operating bank."
Myers mentioned, "More than two-thirds of our experts are internally focused—ensuring delivery for our firm is their top priority. They are a precious resource, and we must be thoughtful about whom we provide access to."
With 30 years at JPMorgan, Myers previously served as global head of equity capital markets. In her enhanced role, she will collaborate with advisory teams and subject matter experts across the bank. She noted that the Special Advisory Services group would start with just a "handful" of people, but may expand over time in response to client demand.
JPMorgan is set to announce its fourth-quarter and full-year earnings next week. According to LSEG estimates, as of December 11, JPMorgan had generated $9.44 billion in investment banking fees for the year, ranking it as the top firm globally with a 7.4% share of the market.