European lenders have already been aggressively publicizing plans to relocate their operations from the UK, resulting in high personnel turnover. In light of this shift, JPMorgan (NYSE:JPM) has opted to install a new operations center in Warsaw.
The decision to set up shop in Poland is a strategic move for the US lender as it looks for a foothold in the EU. As the largest economy in Eastern Europe, Poland boasts a number of advantages, including low taxes and labor costs. The move is expected to generate thousands of jobs, according to a Reuters report.
JPMorgan’s new operations center could also be a windfall for Warsaw. It is unknown how many personnel JPMorgan will hire locally or bring from abroad, however. Regardless, there will be demand for workers in several areas, including data management.
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This was echoed by Polish Deputy Prime Minister Mateusz Morawiecki, who noted that JPMorgan would employ “people with competences such as in data management, risk management, credit risk management, supply chain management.”
Short list of candidates
Warsaw had been on JPMorgan’s shortlist of candidates, as it eyed a new location for its operations center in Eastern Europe. Wroclaw and Budapest were also rumored to be in the running.
The past two years has seen a huge uptick in the flow of finance personnel in Europe, and this is only going to increase in the near future. With Brexit negotiations ongoing, Theresa May’s past rhetoric has effectively forced those lenders that operate in the UK to take alternative measures.
While the UK will still remain atop the pecking order as a financial services center, Frankfurt and Dublin have each emerged as rivals to the UK capital. It is presently unclear whether other lenders will follow JPMorgan’s move into Warsaw, though the city has already seen a marked increase in personnel courtesy of Brexit concerns.
Upwards of 35,000 to 45,000 workers from within the EU have flocked to Poland since the Brexit process was first initiated. “This is a huge success because this is a sort of Mercedes in the financial services sector,” Morawiecki reiterated, speaking to Polish public radio regarding the new operations center.