JP Morgan Chase head of global investment banking for China, Huang Guobin, describes the bank’s latest strategic approach to blockchain technology and fintech.
According to news outlet Wall Street CN, Huang says investment bankers must master blockchain and other emerging technologies as future industries will be defined by business logic and customer needs. Huang breaks down future industries into seven main categories.
- Financial Services and Technology
- Medical Health and Technology
- Enterprise and Technology
- Smart Travel
- New Consumption and Smart Manufacturing
- Digital Channels
- Modern Infrastructure and New Energy
Huang expects the transformational wave to dominate and eventually eliminate players that fail to adapt.
Earlier in 2018, Huang gave a lecture at Peking University on “The Positioning and Development of Investment Banks in the Age of Science and Technology Revolution.”
“For the current investment banking structure, we have made a subversive reform of all in tech. This customer-centric, technology-oriented ‘axis’ industry structure has three characteristics. First, the entire platform of our service must be technology-oriented, and all industries have technological elements, so it is called all in tech.”
“Second, all investment bankers must master basic technical skills and have scientific DNA, otherwise they will not survive.”
“Third, our industry settings are different from traditional industry coverage models. Our industry settings are designed based on business logic, customer needs, and business needs. For example, logistics, excellent guest workshops are all B2B companies. We classify them as corporate and technology service groups. B2C companies such as e-commerce, leisure, and retail are directly serving individual companies through AI and other technologies. We call it the Digital Path Industry Group.”
Industry segmentation, according to Huang, will continue to morph. He says Ant Financial, owned by Alibaba founder Jack Ma, could be categorized as a TMT (Technology Media Telecom) along with other investment banks.
Alibaba, which powers popular mobile payments platform AliPay, continues to thrive with an increasing number of people in China turning to the app, as well as WeChat, as a payment option.
“Many young people are very excited. They feel that they are all technology investment bankers. Although they will not turn around overnight, at least young people have the opportunity to understand technology.”
“The 200-year reform will serve as a reference. Whether we succeed or fail, we can share our experience and pave the way for future generations.”
JPMorgan appointed Huang as head of China global banking in 2015 after his departure from Goldman Sachs.
JPMorgan continues to show a growing appreciation for blockchain tech, with initiatives like its Blockchain Center for Excellence, in spite of its popularization by the world’s leading cryptocurrency Bitcoin, which JPMorgan CEO James Dimon has described as a fraud.