JPM FIG Verticals?

Based on the most helpful WSO content, FIG at JPMorgan is known for its strong banks team, which is a standout in the industry. However, when it comes to the more niche verticals like Fintech, Financial Technology & Wealth and Asset Management (FTWAM), or Specialty Finance, the dynamics can vary:

1. Fintech / Financial Technology: This vertical is typically valued off EBITDA rather than balance sheet metrics like P/BV or P/TBV, making it distinct from traditional FIG sectors. Fintech is often seen as a more dynamic and innovative space, and working in this group can provide exposure to cutting-edge financial technologies and market disruptors. It also offers a broader skill set that can be spun into non-FIG opportunities.

2. FTWAM (Financial Technology & Wealth and Asset Management): Asset management firms, both traditional and alternative, fall under this category. The business model revolves around generating fees—management fees (a percentage of AUM) and performance fees (a percentage of returns). This group provides exposure to the asset management industry, which is less balance-sheet-focused and more about understanding fee structures and investment strategies.

3. Specialty Finance: This includes companies like non-bank credit card companies, mortgage REITs, and payday lenders. Specialty finance companies differ from banks as they secure loanable funds in the capital markets rather than through deposit funding. This vertical is highly technical and involves understanding net interest spreads, funding models, and credit products that don't fit within traditional banking regulations.

Overall, while JPMorgan's banks team is a powerhouse, the niche groups like Fintech, FTWAM, and Specialty Finance offer unique opportunities to develop specialized skills and gain exposure to different valuation methodologies and business models. These groups can also help reduce the "pigeonhole effect" often associated with FIG roles, making them attractive for those looking to diversify their experience.

Sources: Working in FIG (Financial Institutions Group) - An Overview., Working in FIG (Financial Institutions Group) - An Overview., Why Should I Work in FIG Investment Banking?, Which groups should you avoid at all costs?, What Field Are You And in What Broad Region?