Jim Cramer: Why Big Banks Struggle to Follow in Fintech's Footsteps

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Why does Jim Cramer Like fintech so much?

"In his "Cramer's Playbook" segment, Cramer said he's always been a big fan of fintech, but today he got another big reason why. Jamie Dimon, CEO of JPMorgan Chase (JPM) - Get Report, was recently asked point-blank why his bank is struggling to compete with upstarts like Square (SQ) - Get Report. Dimon's answer was simply that JPMorgan "didn't have the imagination" to think up offering loans to small businesses based on their daily receipt volumes," wrote TheStreet's Scott Rutt in his Mad Money recap. "Dimon added that companies like Square also don't have the legacy systems that weigh down big banks like JPMorgan nor do they have to swim the sea of regulatory requirements."

"But Dimon's first answer, the failure of imagination, is what caught Cramer's attention. JPMorgan didn't see what their customers needed, but American Express (AXP) - Get Report did when it acquired Kabbage, which offers similar cashflow services," he said.

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Editor's Note: This story has been updated to correct the spelling of Kabbage.

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