On Friday, October 27th, Generational Transfer Entrepreneurs was privileged to sit down for a lunch & lecture with Pittsburgh-native and Carnegie Mellon graduate Justin Krauss, VP of Middle Market Commercial Banking at J.P. Morgan. During his visit, Mr. Krauss spoke to the GTE team about his career as a banker, and gave advice to analysts who were interested in a career in business banking. Mr. Krauss emphasized the importance of working within an area of banking that interests you, and emphasized the advantage of this interest when trying to work your way up within a company. According to Krauss, starting your career in banking will always be harder when moving from a smaller-known bank to a position within a larger, nationally recognized bank. Mr. Krauss’ position with J.P. Morgan allows for him to maximize outreach to potential banking customers and bring in new customers who hold a variety of banking needs. When dealing with business banking and loans, Mr. Krauss explained that J.P. Morgan maintains 3 business funnels based on revenue brackets: Consumers, Small Businesses, and Big Businesses. J.P. Morgan holds preference for specific industries or companies with a proven track record of strong revenue and growth, and look more towards companies that maintain high asset balances for collateral, such an inventory. According to Mr. Krauss, when evaluating businesses to lend to, J.P. Morgan prefers to work with companies that maintain a solid and steady growth rate as well as stable cash flows with strong assets. These assets are important for J.P. Morgan to look at when considering asset-based lending, which is a business line of credit which is secured by collateral assets. Though these loans vary in amount, according to Krauss, J.P. Morgan has “thousands of million dollar loans out there” for many types of companies, particularly small businesses. When looking to the future of business banking, Mr. Krauss expects changes to come soon. A boom in financial technology such as fast paced transaction outlets like Venmo and Paypal add ease and speed among users, while posing a challenge for large scale banks like J.P. Morgan to keep up when it comes to efficiency and familiarity of use.