JP Morgan Chase 2013 Annual Report Download - page 40

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our other businesses across
JPMorgan Chase. For example, 55%
of Commercial Banking customers
and 35% of Private Banking house-
holds visit a Chase branch every
quarter. Branches are a core distribu-
tion channel for our other products
as well – 55% of retail mortgages are
originated through a branch, and
40% of Chase-branded credit cards
are sold through the branches.
Branches aren’t just a store – they
also are centers of community.
During and after severe storms or
community crises, we’ve seen people
come to the branch for help. They
come in to make calls and charge
their phones when they are out of
power or they stop by simply for a
hot cup of coee. In addition, we’ve
hosted events in branches on how to
manage a small business or to better
understand personal finance.
Branches will always be the life-
blood of our business, but we are
seeing foot trac and transaction
volume come down as more custom-
ers prefer to do their daily banking
online and through mobile. Teller
transactions have declined 4% per
year from 2010 to 2013, and nearly
60% of all traditional branch trans-
actions now are handled through
self-service channels.
Over the past several years, we have
built out our network in growth
markets, and that expansion now is
complete. We have a terrific network
to serve customers, and we plan to
keep the number of branches in our
footprint in the current range. We
will further optimize the network we
have – opening locations where we
see growth opportunity and consoli-
dating where we have enough density
or low trac. As always, customer
behavior and satisfaction will drive
those decisions.
The branches are changing. We used
to talk about the “branch of the
future,” and, in many cases, it’s here.
Branches are becoming more and
more automated. Today, over 300
branches have Express Banking
Kiosks, which are designed to
perform 85% of what can be done
by a teller. Today’s branch also will
be more focused on providing great
financial advice from one of our
experts. If you haven’t been to a
Chase branch lately, I encourage you
to stop by. We’ve come a long way.
Conclusion
I’m proud to work at Chase. Our
more than 150,000 employees work
so hard to help customers achieve
their goals, whether assisting in a
branch or a call center or working
hard behind the scenes. Thank you
to our shareholders for your invest-
ment in us, and thank you to our
customers for your business.
As an example, in December of 2013,
we launched an Ultimate Rewards
mobile app for our customers to
redeem their credit card points.
Within the first month, mobile
reward redemptions reached 15%.
Customers are very pleased by how
easy it is to cash in their points. It’s
also far more ecient to do so; a
mobile redemption costs about a
penny vs. $3 through a call center.
Technology innovations really are a
win-win. They make banking more
convenient for our customers and
reduce our cost to serve them.
We intend to continue to be at the
forefront of innovation in Payments.
In 2014-2015, we will roll out two
new features – Chase Wallet and Pay
with Chase. Chase Wallet will greatly
simplify online and mobile shopping
for our customers by allowing users
to access all their credit and debit
cards, including non-Chase cards, in
one digital wallet. And unlike other
digital wallets, the Chase Wallet will
automatically update the Chase card
numbers when cards are replaced.
Chase Quick Checkout will give
customers a “Pay with Chase” option
when they shop online. Using their
Chase log-in, they can access their
digital wallet, select a payment
option and place their order. It will
reduce the online/mobile checkout
from about two minutes to roughly
30 seconds. It’s more convenient and
safer for customers, and online busi-
nesses should see increased sales and
lower shopping cart abandonment.
Running great community branches
Branches remain very important to
our customers. More than 95% of
Chase accounts are opened in a
branch, and branches are essential to
Gordon Smith
CEO, Consumer & Community Banking