JPMorgan Chase has avoided the types of drops seen in trading volumes that have afflicted its peers, the “bulge bracket banks” (banks that offer both financing and advisory banking services). This is partly because the bank has begun to implement digital services, picking up on the trend across financial services and the threats posed by new banking entrant start-ups.
JPMorgan Chase & Co. is the largest bank in the U.S. and the world’s sixth largest bank by total assets. The bank is by the investment banking, asset management, private banking, private wealth management, and treasury and securities services divisions.
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According to a report by CB Insights, the bank is spending around $9.5 billion per year on technology including $300 million to improve JPMorgan’s technology for its asset management products. Compared with its major competitors, JPM has the highest number of mobile banking customers in the U.S.
In addition to users, the bank’s Chase Mobile app boasts a 4.7 (out of 5) rating in the Apple App Store. Chase has also launched an all-mobile banking app targeted at millennials. According to Forbes this app is designed to help millennials to save more, track spending, and gain better control of their finances. Named Finn, the app consists of a checking and savings account and a debit card which won’t allow a user to spend more than she has in her account.
In addition the bank has partnered Bill.com to enable its customers to send and receive electronic payments and invoices. The bank is also working with Stripe,s payments processing start-up, according to the CB Insights research.
This digital technology investment is set to continue with the bank’s CFO Marianne Lake stating that: “having a leading digital capability is critical to our overall customer franchise, and it will in all likelihood have an impact on stickiness of deposits because customers value that kind of convenience very highly.”
