(Reuters) - JPMorgan Chase & Co (NYSE:JPM) said on Tuesday it would buy OpenInvest, a fintech startup backed by Andreessen Horowitz and Y Combinator.
Founded in 2015, OpenInvest's products allow financial advisers to build, manage and report on their environmental, social, and governance (ESG) portfolios, according to its website. It also offers ESG investment management products.
The terms of the deal were not disclosed. A spokesperson for the bank declined to comment on the financial details of the deal.
"Clients are increasingly focused on understanding the impact of their ESG portfolios and using that information to make investment decisions that better align with their goals," J.P. Morgan Asset & Wealth Management CEO Mary Callahan said.
The deal comes as the pandemic has also caused a surge in interest in companies that perform well on ESG targets such as lowering climate emissions or encouraging more diverse workforces.
OpenInvest will retain its own brand name and will be integrated into J.P. Morgan's Private Bank and Wealth Management client offerings, the bank said.
The acquisition comes weeks after the bank said it has bought British digital wealth manager Nutmeg as part of its expansion into the UK retail banking and investment market.