Chase Exec Still Values Branch Channel

by Mercator Advisory Group 0

From a Bank Talk article:

JP Morgan Chase’s annual report makes a persuasive argument for the profitability of bank branches.

“Branches are good investments,” says Todd Maclin, CEO for Consumer & Business Banking. “Most break even within three years and contribute $1 million in pretax earnings after 10 years.”

Maclin offers a number of data points to support his opinion:
• Branches bring in about 20% of U.S. retail assets.
• Forty-five percent of Chase-branded credit cards are sold through branches.
• About 50% of retail mortgages are originated in branches.
• In Treasury & Securities Services, about 30% of commercial dollars are deposited in branches.

The points made in the Chase annual report coincide with recent Mercator Group research that shows branches are still relevant, but continue to evolve over time.

Branches are becoming more of a foundation channel for financial institutions that are developing or extending their multi-channel strategies.

While self-service channels such as ATMs, online, and mobile banking are increasingly being used for daily transactions, branches continue to be a focal point for many cross-sell and up-sell efforts.

Click here to read more from Bank Talk.