Daniel Pinto, the co-president and chief operating officer of JPMorgan Chase, told CNBC in an interview that 2020 will likely see sturdy economic growth of about 1.5 percent or 1.8 percent in the United States.
That, he said, signaled an economy that is strong on consumer spending.
He said things were not so solid in the realm of corporate spending as U.S. and China relations deteriorated this year amid a trade war and tariffs.
Next year, he said that will continue as uncertainties between the U.S. and China, which led to reduced inventories and less spending on capex, would need to be repaired.
He said a deal between the two superpowers could lead to the corporate economy stabilizing, although certain issues, such as IP or political concerns, would always be there in some capacity.
Chase reached 8.7 percent market share for global advisory fees in 2018, which Pinto said the institution could improve on, although it would be difficult. He said the challenges came in the form of lending money, which became much more expensive to do after new regulations were put in place.
Navigating global conflicts and knowing when to turn down business also poses challenges, Pinto said.
Pinto said the trading field has changed, with new asset classes and different levels of liquidity adding to the opportunities available. He said the field has become more about making huge amounts of trades at a very tiny margin, while processing and managing risk efficiently. Because of the large volumes, large corporations tend to do better at making a profit, he said.
He said he guessed fixed incomes and equities would be higher within the next five years or so, due to the amount of bonds to trade.
Speaking about companies like Google, Facebook and Uber entering the finance fields, Pinto said it is “only a matter of time” before they began to make bigger moves. He said Facebook’s cryptocurrency, Libra, could potentially become viable, adding that JPMorgan Chase is working on their own coin, JPM Coin, that would use blockchain to make payments.
When CNBC asked about the rise of digital banks, such as Chime, Monzo and Revolut, Pinto said their challenge would come by way of transferring membership into meaningful primary accounts and relationships.
Above all, Pinto said the world is changing and expectations for companies are changing, too. He said companies have to be socially and environmentally responsible or else they could lose business and eventually go extinct.
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