It would appear that JPMorgan’s CEO, Jamie Dimon is wooing millennials with this tech savvy approach which not only brings in significant cost savings while enlarging the bank’s reach and tapping potential new clients where it does not have a brick-and-mortar presence.
On Monday, in its first ever offering of online bank accounts, JPMorgan Chase & Co, launched a smartphone app with the aim of attracting depositors who live far away from its branch offices.
JPMorgan Chase’s app, Finn by Chase, allows the bank’s clients to use a smartphone to open a bank account, including making deposits, issuing of checks, set up saving plans, and track their own spending. Finn debit cards will come by mail for access to cash from 29,000 ATMs.
The trial of the app is aimed at potential clients who use Apple’s smartphones and live within zip codes of St. Louis where Chase has no branches.
With 2.56 trillion worth of assets under its management, JPMorgan plans on marketing Finn in other U.S. cities, as well as launch an Android version of the app in 2018.
As a follow up of this digital initiative, the bank will offer mobile enrollment nationwide for its standard checking and savings accounts.
“Finn lets us reach new customers and new markets,” said Thasunda Duckett, chief executive of Chase Consumer Banking. The app account, she said, “was built by millennials for millennials.”
Banks across the industry are courting millennials as their next generation of customers.
This new initiative could potentially allow Jamie Dimon, JPMorgan’s Chief Executive to do more business and take the bank beyond the 23 states where it has branches.
Dimon has had to repeatedly postpone his dream to expand into states where the bank has no branches. More brick and mortar branches would be a very expensive proposition, would require approval of regulators and could be especially risky when people use branches less often.
“This is for a different set of customers,” said Melissa Feldsher, head of Finn.
Many of the features in Finn are similar to those present in apps by fintech companies, including Moven, which has supplied money management software for TD Bank to offer its depositors.
According to Duckett, JPMorgan designed the app, Finn, from scratch, without relying on what fintech companies have created. “We always look at what is going on, but we lead with what customers were telling us,” said Duckett.