JP Morgan has signed a business deal with Bradesco, Brazil’s second-largest private sector bank, media reports said. It is reported that the US banking giant will potentially transfer its Brazilian onshore clients to Bradesco where it will continue to provide its offshore clients with products and services abroad.
Bradesco told the media, “Bradesco will act to enable an organized transition for the benefit of the clients.”
JP Morgan’s Brazilian clients can choose to transfer their accounts to Bradesco, as part of the agreement. The deal is expected to be completed this week.
The deal will pave the way for the Brazilian banking giant to provide its products and local investments through the onshore product platform to JP Morgan’s onshore private banking clients. Furthermore, the development indicates that JP Morgan will discontinue providing products and services to its existing onshore clients but instead directing them to Bradesco.
It is reported that JP Morgan has about $ 3.5 billion under its belt for the private banking unit which has a long term presence in the country. JP Morgan’s majority of assets and revenue has been in the offshore space.
ConsenSys, a New York-based etherum venture studio, acquired JP Morgan’s enterprise blockchain platform, Quorum last week. Coming to other developments, JP Morgan and AccessFintech, have launched a real-time payment tool for buy side clients.
The bank recorded a 50 percent dip in its second quarter profits as the Covid-19 pandemic has disrupted operations.