JPMorgan Chase's investment in digital is allowing it to maintain a healthy user engagement

Business Insider | 10/17/2019 | Rachel Green
JimmyJoe (Posted by) Level 3
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Q3 - JPMorgan - Chase - Customers - %

As of Q3 2019, JPMorgan Chase has 51.8 million active digital customers — up 7% year-over-year (YoY) — 36.5 million of whom use mobile banking, marking a 12% spike YoY. That's basically flat with last quarter, when digital customer growth was 6% YoY and mobile banking growth was also 12% YoY.

Chase's investments in digital are allowing it to maintain healthy engagement among users and build up an advantage with younger consumers:

Chase - Spender - Tech - Investments - Bank

Chase is the biggest spender for tech investments of any major bank in the US. Chase has an annual tech budget of $11.4 billion, followed by Bank of America's $10 billion tech budget and Wells Fargo's $9 billion. And the firm is pouring more funds into its services overall: Its total expenses in Q3 2019 rose 5% to $16.4 billion, which the firm attributed to "higher volume- and revenue-related expenses and investments." Some of that money likely went to technology, although the firm isn't neglecting in-person banking: It plans to spend $20 billion to open 400 new branches.

The Chase mobile app has become a more significant channel for new account opening and attracting younger consumers. Although the firm recently shuttered its digital-only bank, Finn, after only a year, it's still "gaining share...
(Excerpt) Read more at: Business Insider
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