J.P. Morgan announced today that it will buy OpenInvest, a San Francisco-based fintech that specializes in values-based investments.
As part of the acquisition, OpenInvest will be integrated into J.P. Morgan’s private bank and wealth management offerings, but will also retain its brand identity.
"This acquisition further advances our strategic focus on sustainable investing, and we are thrilled to welcome OpenInvest to J.P. Morgan," said Ben Hesse, head of strategy and business development for J.P. Morgan Asset & Wealth Management.
Founded in 2015, OpenInvest allows advisors to customize and report on values-based investments.
It becomes the second major fintech investment from J.P. Morgan in the past year. In December 2020, the bank bought 55ip, a tax-optimization fintech that specializes in efficiently transferring client assets into model portfolio strategies.
In announcing the OpenInvest acquisition, J.P. Morgan also stated intentions to eventually combine its ESG capabilities with 55ip’s tax optimization.
"Our partnership with J.P. Morgan combines leading ESG technologies with America's largest bank and the ability to reach nearly half of all American households," said Joshua Levin, co-founder and chief strategy officer, OpenInvest, in released comments.