The other day when I was casually scrolling down business news, one piece that mentioned Detroit in the title suddenly caught my attention -- “JPMorgan has invested $150 million in Detroit. Now it's adding $50 million more.” The article talks about how the bank’s initial investment has helped more than 15,000 Detroit citizens gain access to financial services, as well as contributed to creating multiple programs, including more than $1 million granted to the incubator TechTown I am working at currently. The bank would further focus their new investment in four programs based on data research: loan programs for small business, job training programs, access to affordable housing and financial health programs.
This news really interested me because firstly, it was not that common to see Detroit featured in business headlines with positive descriptions. I was also really excited to see TechTown’s name mentioned in the article, knowing that the place I had learned so much from was at the top of their list and being a huge section of the cash contribution. The programs JP Morgan noted, at the same time, provided me insights on the most urgent needs of Detroiters. Most importantly, from my perspective, the rationale behind such investments in Detroit has changed over the recent years. If the initial $150 million investment was more for a philanthropic purpose, the newly added money and the explanation showed that the public were actually reversing their opinion towards Detroit. Instead of viewing it as a hopeless and bankrupt city like years before, even the most profit-driven people in the world have now regained their confidence in this talented city and eager to become part of its revival.
As the article mentioned, “the unemployment rate has been slashed in half -- from 20% in 2013 to 9% in 2018. And, for the first time in nearly two decades, home values have increased.” Multiple data and reports have been supporting the comeback of Detroit. I believe that JP Morgan has made a wise decision. To reach its goal of helping small business and promoting personal financial health, the bank needs to cooperate with local organizations initiating related programs, which are normally non-profit and in need of funding to sustain their daily operation and expand their programs’ outreach. The added investment will not only boost these organizations’ effort of improving Detroit economy and accelerating the process, but also offer the bank a good reputation and further access to the business in the city in the near future.
Link to the article:
https://www.cnn.com/2019/06/26/investing/jpmorgan-investment-detroit/index.html
This news really interested me because firstly, it was not that common to see Detroit featured in business headlines with positive descriptions. I was also really excited to see TechTown’s name mentioned in the article, knowing that the place I had learned so much from was at the top of their list and being a huge section of the cash contribution. The programs JP Morgan noted, at the same time, provided me insights on the most urgent needs of Detroiters. Most importantly, from my perspective, the rationale behind such investments in Detroit has changed over the recent years. If the initial $150 million investment was more for a philanthropic purpose, the newly added money and the explanation showed that the public were actually reversing their opinion towards Detroit. Instead of viewing it as a hopeless and bankrupt city like years before, even the most profit-driven people in the world have now regained their confidence in this talented city and eager to become part of its revival.
As the article mentioned, “the unemployment rate has been slashed in half -- from 20% in 2013 to 9% in 2018. And, for the first time in nearly two decades, home values have increased.” Multiple data and reports have been supporting the comeback of Detroit. I believe that JP Morgan has made a wise decision. To reach its goal of helping small business and promoting personal financial health, the bank needs to cooperate with local organizations initiating related programs, which are normally non-profit and in need of funding to sustain their daily operation and expand their programs’ outreach. The added investment will not only boost these organizations’ effort of improving Detroit economy and accelerating the process, but also offer the bank a good reputation and further access to the business in the city in the near future.
Link to the article:
https://www.cnn.com/2019/06/26/investing/jpmorgan-investment-detroit/index.html
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