JP Morgan Shuts Down Financial Education Student Website Acquired for $175 Million in 2021, Frank Founder Charlie Javice Claims 4.3 Million Customers But JP Morgan Verified Less Than 300,000 Customers
14th January 2023 | Hong Kong
JP Morgan has shut down financial education website for students (Frank) acquired for $175 million in 2021, with Frank founder Charlie Javice and Olivier Amar (Chief Growth Officer) claiming 4.3 million customers but JP Morgan could only verify less than 300,000 customers. In December 2022, JP Morgan filed a lawsuit against Frank founder Charlie Javice and Olivier Amar (Chief Growth Officer). JP Morgan in the filing, alleged that executives from Frank had paid a university professor $18,000 to create fake students information for Frank database to support the 4.3 million customers claim. JP Morgan had sent test emails to the 4.2 million customers with only 28% of emails delivered (JP Morgan delivery ratio is around 99%). A random sample of 400,000 customers were sent an email with only 103 click-through to Frank website. In 2021, JP Morgan had acquired Frank (financial education website for students) for $175 million. In January 2023, Frank founder Charlie Javice sued JP Morgan for terminating her employment in “bad faith” and seeking $28 million in payments. In the 2021 September $175 million acquisition by JP Morgan, Frank founder Charlie Javice received $9.7 million and Olivier Amar (Chief Growth Officer) received $5 million. See below for JP Morgan acquisition of Frank.
“ JP Morgan Shuts Down Financial Education Website for Students Acquired for $175 Million in 2021, Frank Founder Charlie Javice Claims 4.3 Million Customers But JP Morgan Verified Less Than 300,000 Customers “
JP Morgan Chase Acquires Frank, the Leading College Financial Planning Platform for Students
JP Morgan Chase Acquires Frank, the Leading College Financial Planning Platform for Students
Acquisition to help millions of students and adult learners plan, save, and apply for college
21st Sept 2021 – JPMorgan Chase & Co today announced that it has acquired Frank, the fastest growing college financial planning platform, to help millions of students and their families navigate their financial journey to college and beyond. The firm will acquire Frank’s entire business, including its Easy FAFSA®, Classfinder College Course Marketplace, Scholarships & Employment tools, and Financial Education and Careers content.
“We want to build lifelong relationships with our customers,” said Jennifer Piepszak, co-CEO of Chase. “Frank offers a unique opportunity for deeper engagement with students. Together, we’ll be able to expand our capabilities for students and their families, helping them financially prepare for college and other major moments in their future.”
Frank currently serves more than five million students at over 6,000 higher education institutions across the country. Their simple online portal lets students apply for financial aid in minutes and enroll in Frank’s catalogue of affordable online college courses.
Frank’s solutions uniquely cater to 17–24-year-old students, 24+ year-old adult learners, parents and guardians, and households of a low-to-moderate income. Their platform includes:
- A streamlined FAFSA® application process that reduces time from hours to minutes
- Advice to students appealing and negotiating financial aid packages
- Curated scholarships
- ClassFinder, a marketplace of discounted college-level courses for transferable credit
The deal is expected to accelerate Chase’s strong foundation with students including products, content, and guidance for students of all ages, with branches and ATMs on or in close proximity to over 300 college campuses across the country. These branches offer financial health resources and advice for students and their families like budget building, starting a savings plan or opening their first checking account.
The Frank brand will continue to be led by Frank Founder and CEO Charlie Javice. She will join the firm as Head of Student Solutions on the Digital Products team.
“We launched Frank to make college more accessible for students and their families, and have already helped millions across the nation,” said Charlie Javice, Frank Founder and CEO. “We look forward to joining the Chase family to further this mission. Together, we can multiply our impact to help more students and their families achieve their financial goals and education dreams.”
Ms. Piepszak added, “We are excited to welcome Charlie and Frank to JPMorgan Chase, and look forward to working together to empower students and their families to build a stronger financial future.”
About Frank
Frank was founded in 2017 by then 24-year-old female founder Charlie Javice to make college more affordable for millions of Americans and help them achieve financial wellness in their lives. More than five million students have benefited from Frank’s services on their path to higher education. The Frank platform includes an easy to navigate FAFSA® application form, ClassFinder marketplace for shopping for online courses, and resources to help students navigate a variety of financial situations. Investors included: Chegg (NYSE: CHGG); Aleph, the U.S.-Israeli investment fund that also funded Lemonade; Silicon Valley Bank; and Marc Rowan, the co-founder and CEO of Apollo Global Management, one of the largest private equity firms in the world.
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $3.7 trillion and operations worldwide. Chase serves more than 60 million American households with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans, and payment processing. Customers can choose how and where they want to bank: More than 4,800 branches in 48 states and the District of Columbia, 16,000 ATMs, mobile, online, and by phone. For more information, go to chase.com.
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