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For the first time in 23 years, JPMorgan Chase is the largest US bank by deposits, a distinction Bank of America (BofA) held for nearly 20 years, according to the Charlotte Observer citing data from the Federal Deposit Insurance Corporation.
Chase, which was already the largest US bank by assets, saw its customers add $96 billion to their accounts over the last year to reach $1.3 trillion, a 7.9% increase year-over-year (YoY), surpassing BofA's $1.29 trillion. This milestone comes at a time when banks have been aggressively jockeying to capture a larger share of financial transactions, which has placed an increased focus on card rewards and digital channels.
Rewards - Programs - Channels - Banks - Growth
By leveraging their rewards programs and digital channels, banks are hoping to spur growth in key areas.
Banks are offering some of the highest card rewards ever seen to increase spend and adoption of card products. In fact, the six largest credit card issuers incurred an estimated $22.6 billion in credit card rewards expenses in 2016, more than double the costs seen in 2010, according to Instinet data cited by the Financial Times. However, for banks, these rewards appear to pay for themselves in adoption and spend — for example, after launching its reward-filled Sapphire Reserve card, Chase reported a 35% increase in new card accounts in Q3 2016, and an over 50% lift on credit card spending.
Digital - Channels - Part - Consumers - US
Digital channels are also playing a bigger part in reaching consumers. Three of the US' largest banks have been consistently adding millions of users to their mobile banking apps YoY — as of Q2 2017, Chase had 28.4 million mobile users, BofA had 22.9 million, and Wells Fargo boasted 20.4 million.
Being able to reach consumers in channels of their...
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