The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

JPMorgan Chase is opening more small-town branches in middle America

by admin August 7, 2024
August 7, 2024
JPMorgan Chase is opening more small-town branches in middle America

Three years ago, JPMorgan Chase became the first bank with a branch in all 48 contiguous states. Now, the firm is expanding, with the aim of reaching more Americans in smaller cities and towns. 

JPMorgan recently announced a new goal within its multibillion-dollar branch expansion plan that ensures coverage is within an “accessible drive time” for half the population in the lower 48 states. That requires new locations in areas that are less densely populated — a focus for Chairman and CEO Jamie Dimon as he embarks on his 14th annual bus tour Monday. 

Dimon’s first stop is in Iowa, where the bank plans to open 25 more branches by 2030. 

“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,” Dimon said in a statement. 

He will also travel to Minnesota, Nebraska, Missouri, Kansas and Arkansas this week. Across those six states, the bank has plans to open more than 125 new branches, according to Jennifer Roberts, CEO of Chase Consumer Banking. 

“We’re still at very low single-digit branch share, and we know that in order for us to really optimize our investment in these communities, we need to be at a higher branch share,” Roberts said in an interview with CNBC. Roberts is traveling alongside Dimon across the Midwest for the bus tour.

Roberts said the goal is to reach “optimal branch share,” which in some newer markets amounts to “more than double” current levels.

At the bank’s investor day in May, Roberts said that the firm was targeting 15% deposit share and that extending the reach of bank branches is a key part of that strategy. She said 80 of the firm’s 220 basis points of deposit-share gain between 2019 and 2023 were from branches less than a decade old. In other words, almost 40% of those deposit share gains can be linked to investments in new physical branches. 

In expanding its brick-and-mortar footprint, JPMorgan is bucking the broader banking industry trend of shuttering branches. Higher-for-longer interest rates have created industrywide headwinds due to funding costs, and banks have opted to reduce their branch footprint to offset some of the macro pressures. 

In the first quarter, the U.S. banking industry recorded 229 net branch closings, compared with just 59 in the previous quarter, according to S&P Global Market Intelligence data. Wells Fargo and Bank of America closed the highest net number of branches, while JPMorgan was the most active net opener. 

According to FDIC research collated by KBW, growth in bank branches peaked right before the financial crisis, in 2007. KBW said this was due, in part, to banks assessing their own efficiencies and shuttering underperforming locations, as well as technological advances that allowed for online banking and remote deposit capture. This secular reckoning was exacerbated during the pandemic, when banks reported little change to operating capacity even when physical branches were closed temporarily, the report said. 

But JPMorgan, the nation’s largest lender, raked in a record $50 billion in profit in 2023 — the most ever for a U.S. bank. As a result, the firm is in a unique position to spend on brick-and-mortar, while others are opting to be more prudent. 

When it comes to prioritizing locations for new branches, Roberts said it’s a “balance of art and science.” She said the bank looks at factors such as population growth, the number of small businesses in the community, whether there is a new corporate headquarters, a new suburb being built, or new roadways.

And even in smaller cities, foot traffic is a critical ingredient. 

“I always joke and say, if there’s a Chick-fil-A there, we want to be there, too,” Roberts said. “Because Chick-fil-A’s, no matter where they go, are always successful and busy.” 

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Elon Musk’s X sues advertisers over alleged ‘massive advertiser boycott’ after Twitter takeover
next post
Markets are counting on the Fed to head off recession with sizable interest rate cuts

Related Posts

Dockworkers union, port companies reach tentative 6-year deal

January 10, 2025

Lyft co-founders to step down from ride-hailing firm’s...

August 16, 2025

Interest rates will likely start coming down this...

March 7, 2024

FCC greenlights Paramount’s $8 billion merger with entertainment...

July 26, 2025

Walmart hikes its outlook again as shoppers spend...

November 20, 2024

Amazon sued by D.C. AG for allegedly excluding...

December 5, 2024

About 800,000 BetterHelp online therapy customers receive refund...

May 11, 2024

Gold prices hit another record high after fresh...

April 4, 2024

Here’s what the NBA’s new media deal means...

July 27, 2024

Mortgage refinancing surges 35% in one week as...

August 16, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Ben & Jerry’s co-founder resigns, claiming parent company Unilever ‘silenced’ its campaigning

      September 20, 2025
    • The Real Drivers of This Market: AI, Semis & Robotics

      September 20, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      September 20, 2025
    • 58 House Dems vote against resolution honoring ‘life and legacy’ of Charlie Kirk

      September 20, 2025
    • Trump-approved plan to avert government shutdown scuttled by Senate

      September 20, 2025
    • Senate Republicans block Democrats’ ‘filthy’ counteroffer as shutdown deadline looms

      September 20, 2025

    Categories

    • Business (1,387)
    • Politics (4,534)
    • Stocks (1,659)
    • Uncategorized (45)
    • World News (1,380)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved