JPMorgan is buying an ESG investing platform in bank’s third fintech acquisition of the past year

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JPMorgan is buying ESG investing platform OpenInvest — its third fintech acquisition of the past year. The SquawkCNBC team discusses.

The bank's latest move, for deal terms that couldn't be determined, will help JPMorgan's financial advisors customize clients' investments in ESG, the broad category that includes environmental, social and governance factors. ESG funds have attractedMary Callahan Erdoes at Delivering Alpha 2015 in New York.

"Through technology, it's now possible, for example, to give people granular control over how their values are implemented," Murray said last week in an interview. "It's not just whether or not you care about gender equality, but whether you want to tilt more towards maternity leave or gender pay gap or board compensation, any of the things that matter to the client.

"We caught them early in their journey, but I would say just from studying what they built and the trajectory they were on, there's no doubt in my mind that they were on a quick path towards greater impact and a much larger level of AUM," said Mike Camacho, JPMorgan's head of wealth management solutions.

The co-founders hinted that their technology could ultimately be used at JPMorgan beyond the investing realm. In the future, it could conceivably help ensure that customers' purchasing decisions and charitable donations align with their values, they said. "The scope of this opportunity stretches across financial services," Levin said. "We face an opportunity to fundamentally change finance and the way that humans interact with money."Become a smarter investor withSign up to start a

 

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