Major boost for fast-growing financial sector
◆ JP Morgan Private Bank unveils major new investment in ‘phenomenally attractive’ Edinburgh, writes Emma Newlands
Edinburgh “is a phenomenally attractive place” in which to do business, states Oliver Gregson, region head of JP Morgan Private Bank in the UK, Ireland and Channel Islands, during a visit to the city. And reinforcing such enthusiasm is the organisation today announcing a major new investment in the Scottish capital, where it has been present since 1976, with the creation of a new team of six private banking advisers. They will be based at the firm’s offices on Lochside Place in Edinburgh Park to the west of the city, complementing the premises’ 1,500-strong workforce operating across asset and wealth management.
The new unit will provide wealthmanagement services to individuals, family offices, charities and family foundations across Scotland. “We're putting dedicated private bankers working alongside those 1,500 people to tap into all of the things that the firm can do across its lines of business. I think that's really exciting,” says Gregson.
And the move further entrenches the sizeable Scottish footprint that dates back to 1888 of its parent company, the New York-headquartered financial behemoth JP Morgan Chase. Gregson notes that Junius S Morgan, patriarch of the Morgan banking family and pioneer of its Uk-founded private banking activities, holidayed in Dundee in the 19th century, adding that the group is now the second-biggest employer north of the Border outside the Scottish Government, with nearly 4,000 staff.
JP Morgan Chase recently opened a call centre for its retail banking arm Chase in the Scottish capital, while the group has a major presence in Glasgow, which dates back to 1999 when it set up a large technology centre, and more recently attracted protests by Extinction Rebellion. It now has more than 2,500 workers, with hi-tech offices on Argyle Street with room to add 1,000 more opening soon. Similar Scottish expansions by peers include Barclays opening a major Glasgow campus, home to more than 5,500 staff, and Morgan Stanley also boasting thousands of staff in the city centre.
JP Morgan claims to be the first New York bank to establish a representative office in Edinburgh. “And stay, if I may say so,” adds Gregson, who says the Scottish capital and Glasgow are now key global strategic hubs for JP Morgan. He adds: “Part of the reason that we've physically been in Edinburgh for nearly 50 years, and the company has that rich history, is because I think it recognises a lot of the attractive elements that the city and [Scotland] has.”
These, he explains, include its
We want to continue to partner, invest, and grow in many of the things that make Scotland unique Oliver Gregson
knowledge economy with “thriving” universities turning pioneering academic research into companies, and “a really great depth of talent”. He flags fast-paced creative industries in rapidly growing sectors, with Edinburgh strong on insurance and asset-management, and Glasgow with technology, innovation, and entrepreneurship. “It's for those reasons that we really want to continue to partner, invest, and grow in many of the things that make Scotland unique.”
The firm sits alongside private banking peers present in Edinburgh, and also looking to grow in Scotland, including Julius Baer, Weatherbys, and Coutts. And Gregson says his firm is fusing local, on-the-ground staff – “I think the importance of having someone sat the other side of the table, who really understands who you are, where you've come from, and what you're trying to do, is really important” – and being plugged into what is now the world's largest nonstate owned bank.
JP Morgan Chase can in fact trace its roots back to 1799 when predecessor firm The Manhattan Company was chartered to supply "pure and wholesome" drinking water to New York City’s growing population. Later milestones include Abraham Lincoln becoming a customer, and several female-fostering initiatives. That includes First National Bank of Chicago in 1882 establishing one of the first women's banking departments in the US.
And JP Morgan Private Bank – which oversees more than $2.4 trillion (£1.9tn) in client assets globally – also
compiles a Top 200 Women-powered Businesses report, the latest version of which published last year featured 20 businesses from north of the Border.
Continuing to help drive forward Scotland’s status as a longstanding “great shining light of entrepreneurialism, innovation, invention”, now in areas including the energy transition, is a priority for Gregson. Trade body Scottish Financial Enterprise, of which JP Morgan is a member, in September launched a major campaign to attract fresh overseas investment to Scotland’s £14 billion finance sector.
However, Gregson notes that the macro environment remains a challenge, and it was recently revealed that Britain tipped into recession in the final quarter of 2023. But he is keen for JP Morgan to make a positive contribution to the community regardless of the backdrop, for example helping mentoring scheme MCR Pathways to be rolled out across Scottish schools.
Karen De Villiers, MD and Edinburgh site lead at JP Morgan, commented: “Today’s news is a testament to our continued commitment to Scotland. We are proud of the diverse footprint we have established and look forward to building our presence even further with our newly strengthened private banking team and looking ahead, with the launch of new premises in Glasgow city centre in 2024.”
As for the latest Edinburgh expansion announcement, Gregson said: “We've been here for the last 50 years in the city – and I'm very excited to see what the next 50 are going to bring.”