JPMorgan Chase Goes After Middle America Through Branch Openings
The bank is increasing branch locations in a bid to reach smaller towns and cities
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- Written by Banking Exchange staff
JPMorgan Chase is actually increasing branch locations in a bid to reach smaller towns and cities across America, developing a counterintuitive strategy in the digital age.
The bank is one of the largest banks in the world and can afford additional branches without it taking up a high percentage of its internal costs. In Iowa alone, the bank is looking to open up at least 25 new locations.
The new initiative will look to ensure that anyone in the 48 continental states can reach a branch within a reasonable time frame by car.
The initiative is a direct challenge to community banks across the country, but in particular in midwestern states. Bank CEO Jamie Dimon is planning to travel to smaller cities and towns throughout the Midwest this month.
JPMorgan Chase issued a statement from Dimon: “From promoting community development to helping small businesses and teaching financial management skills and tools, we strive to extend the full force of the firm to all of the communities we serve.”
The bank recently revealed that its target is to reach 15% share of America’s deposits and that physical branches are a key part of the growth strategy.
As smaller regional banks have been shutting down branches for a number of years, the countermove by the banking giant was somewhat unexpected as digital banking has taken center stage.
Bank of America and Wells Fargo, two of the nation’s other three largest banks, have been leading in branch closings. In countries such as the Netherlands, branches have almost become obsolete.
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