Ned Miller’s Post

Chase is strategically expanding into low-income areas by leveraging data and analytics to pinpoint locations, profitability, and product offerings. Small banks and credit unions must act swiftly to prevent market share loss to Chase's formidable marketing prowess penetrating their territories. It is crucial to offer easy credit access, tailored credit card options for credit building, and a readiness to embrace higher risk. Embracing a data-driven analytical strategy is paramount for competitive positioning. #DataAnalytics #Banking #MarketStrategy

This will be an interesting strategy for Chase’s branch expansion. We tend to live in a digital-first banking experience but when done right, branches serve a real purpose in local markets. #jpmorgan #chase #communitybanking

JPMorgan Chase Still Prefers Bricks-and-Mortar Branches: Hundreds of branches at rival banks are being closed each year, and customers are shunning the teller and choosing the mobile app. But at the America’s biggest bank -- JPMorgan Chase, old-fashioned bricks-and-mortar locations are part of the secret sauce. The bank announced plans on Tuesday to double down, continuing a yearslong strategy. JPMorgan plans to build 500 new branches in the next three years. The multibillion-dollar investment will fill out cities it has recently entered such as Boston, Philadelphia and Charlotte, N.C. For context: Only 17 banks have more than 500 branches today. JPMorgan has close to 5,000, according to the Wall Street Journal (WSJ). JPMorgan now has more than US$2.0 trillion in deposits, nearly double what it had a decade ago. In 2021, it surpassed Bank of America as the biggest total deposit holder, according to Federal Deposit Insurance Corp. data. Executives have a target of gathering 20 per cent of the entire country’s deposits, up from 12 per cent today, according to S&P Global Market Intelligence. The New York City based global newspaper also said JPMorgan isn’t alone. Its top consumer rival, Bank of America, has been counting on branches for its own market expansion and renovating others to defend its turf. After seeing early gains, it announced a new stage last summer. It plans to enter nine new markets and four states in the coming years, which would bring its total to 39 states. It has 11 per cent of all deposits today and ranks in the top two deposit holders in 23 of the 30 biggest markets. However, leaders at the big banks believe branches remain the key ingredient to drawing in new consumer and small-business clients, even in an increasingly digital world. #jpmorganchase, #bankofamerica, #branches, #wsj, #bricksandmortar, #newyorkcity, #deposits, #consumers, #digitalbanking, #mobileapp, #digitalworld

Interesting #financialinclusion move by JPMorgan in the US: 100 new bank branches will open in Low-Income Communities. “This is not just ‘do-gooding,’ this is business,” outlined CEO Jamie Dimon. These new branches will include the fundamentals — tellers, ATMs, etc. — but also offer services for small businesses and host financial literacy workshops. They will be staffed by staff who have a background of working with community organizations. This forms part of JPMorgan’s broader strategy to increase its physical presence in the US, a market where the Federal Reserves estimates that « banking deserts » impact 12 million Americans. https://lnkd.in/gND74zrT Marjolaine Chaintreau Barbara Magnoni Garance Wattez-Richard

DBE supports community financial institutions across the Midwest, so it's no surprise that this recent CNBC article caught our attention. With Chase expanding its reach and Bank of America and PNC making similar moves, it's clear that CFIs are facing unprecedented competition. However, at DBE, we believe this isn't a reason for despair—it's an opportunity. “The folks we serve care. They are already a foundational part of their communities. Our technology empowers these institutions to not just gain efficiencies but to compete on wallet share, deposits, loans, and attracting talent." Josh Banta President, DBE Community financial institutions should view this as a moment to strategically align with the right technology partner. By doing so, they can not only maintain their position but also expand their influence in the markets they serve. What steps will you wish you had taken this strategic planning season to ensure you retain clients and talent if Chase opens a branch in your town within the next three years? Need help coming up with your blueprint to success? DBE is here for you. Contact us today at: https://lnkd.in/gxavaiPR

As Chase moves forward with its expansion plans, the banking giant sets a new standard for how banks can serve as catalysts for community development and economic empowerment. This initiative not only strengthens Chase's market position but also contributes to the broader narrative of banking's evolving role in society. #Community #economics #Chase #Banking

You could say it's going back to its old school roots. At a time when many banks are shying away from brick-and-mortar, JPMorgan Chase is doing the opposite by opening more small-town branches in smaller cities and towns. When you consider that everything from retailers to drugstores are closing shop and leaving gaps in less densely populated areas, JPM's strategy is distinctly different. Banking a different way? Persistent high interest rates have created financial challenges for banks due to rising borrowing costs. That has many institutions have opted to reduce their physical presence to offset some of these economic headwinds. JPM is bucking the industry trend by expanding its physical branch network. From a pure numbers perspective, the banking giant plans to open more than 125 new branches in Minnesota, Nebraska, Missouri, Kansas and Arkansas along with 25 in Iowa by 2030. Could bank branches be facing a Jurassic Park moment? While branches have been disappearing like dinosaurs, a resurrection could make sense. JPM's numbers may sound small, but not so much when you consider the prevailing industry trend. The U.S. banking industry significantly accelerated branch closures in the first quarter, with a net loss of 229 branches compared to just 59 in the previous quarter. Wells Fargo and Bank of America led the trend with the most branch closings. While part of the closures have to operational efficiency, a more significant element is the technological advances such as online banking and remote deposit processing that have reduced the need for customers to visit a physical branch. For JPM, the strategy is focused on community building with a more hands-on approach to small businesses. Look no further than the retail industry. Ecommerce may provide a convenient shopping option, but the industry is now discovering an online-only strategy compromises customer satisfaction by reducing in-person interactions. JPM is now banking on changing that https://cnb.cx/3LSq11z #jpmorganchase #banks #consumers #finance #unitedstates #cities

If you've been waiting for a sign, this may be it🚦. JPMorgan Chase recently announced the closure of its iconic Wall Street branch, ending more than 150 years of physical ties between the bank and the street, a generic term for the global money business😒 . As more customers opt for online and mobile banking services, traditional brick-and-mortar branches may become less necessary. This move by JPMorgan reflects strategic decisions based on changing consumer preferences and market dynamics. By the way, Bloomberg reported that consumer advocates warn that the closings risk widening the wealth gap by leaving scores of low-income areas with less competition for services such as personal checking and small-business lending. At JTC, we understand the challenges faced by traditional banks in today's digital age. Our off-the-shelf platform Salto.Bank offers a comprehensive solution for digitizing products and processes, empowering banks to streamline operations, enhance customer experiences, and stay ahead of the curve. With our cutting-edge technology and expertise, we enable banks to seamlessly transition towards a digital-first approach, ensuring they remain competitive and relevant in an increasingly digital world. If your bank is looking to embrace the future of banking and elevate its digital capabilities, JTC team is here to help. Let's embark on this transformative journey together! @photo by Jutharat Pinyodoonyachet for The Wall Street Journal #fintech #neobanks #banking #bankingindustry #fintechinnovation #financialtechnology #financialservices #banks #banking #bankingindustry #neobank #digitalbank #mobilebanking #bankingapp #digitalbanking #neobanks #challengerbank #bankingtech #fintechinnovation #fintechstartup #fintechnews #fintechstartups #digitalfinance #bankinginnovation #businessanalyst #jtc #saltobank

Last May, JPMorgan Chase purchased a majority stake in First Republic Bank, which was stumbling toward insolvency after many of its affluent clients pulled $100 billion in a single quarter. Nearly a third of the $92 billion in deposits JPMorgan received from the deal came from “large” bank accounts. While some First Republic branches were open the day the deal was announced, JPMorgan is now in the process of converting others into luxury branches, or what the bank is calling JPMorgan Financial Centers. A spokesperson from JPMorgan Chase tells Fortune that not only are the select locations being designed to cater to affluent customers, but that lessons learned will be fed back into JPMorgan’s broader network, which includes 4,900 branches in 48 states and the District of Columbia. Read more: https://lnkd.in/et_wYzVv

Why is JPMorgan Chase opening 500 new bank branches? It's a head scratcher. But let's break down why 👇 Every bank is shutting down branches. It's just cheaper and easier to service customers digitally. But JPMorgan Chase might be on to something. It has to do with how to get consumers to switch banks. In most surveys, the reasons for people to switch will be (generally in this order): 1. Online and Mobile bank capabilities 2. Fees/Pricing 3. Customer service 4. Bank branch network Looking across JPMorgan Chase's main competitors, it's tough to differentiate with number 1 and 2. A lot of the big banks offer similar features and an online/mobile experience. But more bank branches are just another great reason to get a consumer to switch. Let's also do some quick, rough math. The average bank branch costs $1.5M to set up and $1M/year to service. With an average of 900,000 customers entering their local branch every year. That's $50 to service a branch customer over a 3 year period. Bank branches effectively have captive audiences. Branch employees can take the time to cross/up-sell that consumer into a mortgage, wealth management service, or other product/services. Increasing the LTV of one customer. There's more to unpack with this strategy. But it might not be a bad move by JPMorgan Chase. #jpmorgan #finance #banking #fintech #innovation