The Customer Effect

‘It’s not old news’: Chase prioritizes better, fewer physical branches

  • JPMorgan spent $1.9 billion on technology, communications and equipment expenses in the third quarter, a 13 percent increase from the year before.
  • JPMorgan reported a six percent increase in digital users to 46.3 million and a 12 percent increase in mobile users to 29.2 million
close

Email a Friend

‘It’s not old news’: Chase prioritizes better, fewer physical branches

Despite a significant uptake in mobile banking, people are still interested in branches — and while that theme might seem a little tired, it’s still very much still a high priority for JPMorgan Chase.

“Branches still matter — 75 percent of our growth in deposits came from customers that have been using our branches,” chief financial officer Marianne Lake said Thursday morning on the bank’s third-quarter earnings call. “On average, a customer comes into our branches multiple times in a quarter. I know it all sounds like old news, but it’s still current news.”

That doesn’t mean more branches. Chase reported a 5,174 branch count, a three percent decline from the same quarter last year, and that’ll continue. Chase is “continuing to consolidate, close, move, grow, change all of our branches in line with the opportunity in the market,” Lake said.

In the same period, there was a six percent increase in digital users to 46.3 million and a 12 percent increase in mobile users to 29.2 million. Lake noted the importance of staying attuned to customer’s changing preferences as they concern digital channels, recognizing that “having a leading digital capability… will have an impact on significant deposits because customers value that kind of convenience very highly” and underlining that the bank is “not being complacent” to those preferences.

“If customer behavior starts changing in a more accelerated fashion we will respond accordingly,” Lake said.

The bank spent $1.9 billion on technology, communications and equipment expenses in the third quarter, a 13 percent increase from the year before.

While that looks modest, “the investments we’re making in technology will effectively breed and deliver the efficiency,” Lake said. “To the ability were able to find incremental investments or accelerate them we’ll be willing to do that.”

JPMorgan is the third most aggressive investor in fintech startups among the large U.S. banks, behind Citi and Goldman Sachs. To date it’s invested in at least 13 startups and was the lead investor in business payment network Bill.com’s $100 million funding round that closed this week. On the investment banking side, it created a role for company veteran Samik Chandarana to lead the deployment of machine learning and data-based solutions throughout the organization.

The company is also working to stay ahead of the curve when it comes to identity and security. Lake said it is constantly been evolving and refining its approach to fraud prevention, detection and underwriting, moving to a multi-factor protocol around customer identification and looking to put its data trove to better use in informing its underwriting decisions.

As a practical matter, she said, addressing a question about the Equifax hack, there hasn’t been a significant increase in fraud. Equifax wasn’t the first horrific data breach and won’t be the last.

“We’re already spending the money we need to spend to keep ahead of the curve on these things,” she said, insisting that JPM’s attitude must be proactive instead of reactive. “The combination of all the information that has been compromised over the past several years has put pressure on fraud costs but… [there’s] no impact on expenses or loan growth that would be measurable.”

0 comments on “‘It’s not old news’: Chase prioritizes better, fewer physical branches”

The Customer Effect

Finance apps dominate Play Store and App Store – but have surprisingly low ratings

  • Consumers across app categories are increasingly looking at store reviews and ratings to decide which apps to use.
  • Finance is one of the fastest growing categories across Apple and Google stores, though lacking dominant players as in other categories.
Subboh Jaffery | October 25, 2021
The Customer Effect

The pandemic may be receding, but its effects on consumer banking aren’t

  • Covid has changed the consumer’s relationship with cash, savings, and digital banking.
  • It’s becoming increasingly likely that these changes will far outlive the pandemic.
Ismail Umar | August 18, 2021
Member Exclusive, The Customer Effect

Inside ‘climate fintech’: The fintech firms using carbon offsets to address climate change

  • Financial institutions are increasingly rallying around environmentally friendly initiatives.
  • Startups are turning towards carbon offsets to build a carbon-neutral future.
Rimal Farrukh | June 07, 2021
The Customer Effect

‘It’s the unifying login layer for commerce’: Bolt’s new SSO product eliminates the need for guest checkout in online shopping

  • SSO Commerce by Bolt enables smooth checkout for shoppers and higher conversion for retailers.
  • Consumers can open a store account and save their payment credentials in a single click at checkout.
Ismail Umar | May 20, 2021
Member Exclusive, The Customer Effect

‘What gets measured gets done’: The steps B2B fintechs are taking to improve customer success

  • It looks like B2B fintech is booming this year.
  • To stay in the game, B2B fintechs need to keep their customers happy. Here’s how they’re doing that.
Rivka Abramson | April 15, 2021
More Articles