Fintech
JPMorgan’s unprofitable fintech continues to hire and pay an average of $100,000
Financial Technology is in its profitability era in 2024. VCs are focusing their funding on money-making fintechs and profitability is a key factor topic of discussion for CEOs now more than ever. However, fintechs acquired during the fintech boom may be exempt from such difficulties.
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Nutmeg, an investment management fintech acquired by J.P. Morgan for $907 million in 2021 has just posted a loss of $54.6 million after publishing its 2023 accounts through Companies House in the UK. It has yet to make a profit in 11 years of trading and This year’s losses are the largest ever.
And yet… Nutmeg has started hiring. The accounts also show that Nutmeg has increased its headcount by 36%, to 290 employees in 2023.Wages and salaries‘ have been marginally down, but the average Nutmeg employee earned £80.6k ($104.7k) last year. Nutmeg, like venture-backed fintechs, also offers its employees equity compensation in the form of RSUs, and the fintech has increased the value of those equity units by 27.5% on average. It’s not done hiring yet, either; Nutmeg currently has 14 open positions, including product manager and software engineering positions.
Venture capitalists predict many fintech acquisitions and mergers in the near future when the financial trails run out, and the special treatment Nutmeg is receiving from JPMorgan indicates why. The bank in general seems to be it’s going pretty welland within JPMorgan, Nutmeg is a fringe player with significantly less pressure. Things aren’t life-or-death, so JPMorgan can afford to think ahead.
Nutmeg Glassdoor reviews in 2024 say the fintech has a “very relaxed working environment” with good people, but thoughts on his leadership are mixed. Some reviews praise the lack of management interference, while one team executive says his SLT “urgently” needs an overhaul.
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