Frequent buyers are likely to get more discounts on banking products.
Taking a cue from Amazon.com, JPMorgan Chase & Co’s chief executive Jamie Dimon stated he expects the bank to offer more price discounts to its banking customers who buy multiple products, just like the way Amazon.com does.
“You are going to see more relationship pricing,” said Dimon on a Wells Fargo & Co webcast for its clients. “We give you more if you are at different levels and tiers,” he said – for example, some free stock trades. “We may test different types of things.”
The bank aims to employ this strategy to expand its business as it is barred by law from any further expansion vide acquisitions in the U.S., as long as it holds more than 10 percent of insured deposits.
Earlier this year, Dimon quoted Amazon.com’s founder Jeff Bezos as saying “your margin is my opportunity” to show how the bank can try to take competitors’ customers with better deals.
Incidentally, Amazon is one of JPMorgan’s key customers since it processes many of its online payments. The bank also issues co-branded cards for the retailer.
While addressing a range of topics in response to questions, Dimon cast doubts on whether JPMorgan will come up with a new breakthrough banking product much like Apple’s iPhone; JPMorgan spends billions of dollars annually on new technology.
He however underscored the notion that ultimately, these investments are likely to pay-off with customers’ growing fondness for mobile banking services, since financial institutions believe they can save money if transaction processing goes digital.