JP Morgan Chase 2015 Annual Report Download - page 59

57
Scale does not mean acting like a
“big bank.” Today’s customers expect
a great customer experience every-
where they do business, and banking
is no exception. We have been
intensely focused on delivering an
outstanding customer experience –
customer by customer across every
interaction – branches, call centers,
chase.com and mobile banking.
We measure customers’ satisfaction in
many ways. One key source is J.D.
Power, where Chase has made signifi-
cant progress since 2010. Our Credit
Card business now is #3, up from
#5 in 2010, and our score jumped 81
points over the same time frame. In
addition, Chase has been recognized
nationally as having the strongest per-
formance in attracting new customers,
satisfying and retaining customers,
and winning a larger share of its cus-
tomers’ total retail banking business
by TNS for the third year in a row.
Similarly, our Net Promotor Score
(NPS), which tracks how many cus-
tomers would refer a friend to Chase
minus those who would not, has
increased across most businesses –
most notably in Mortgage Banking
originations, where NPS has gone up
by 38 points since 2010. Finally, our
Chase Mobile app is the #1 rated
mobile banking app. However, we
will never declare “victory” in provid-
ing a great customer experience.
There always will be work to do and
areas where we aren’t getting it totally
right. But we feel extremely proud of
the significant progress we’ve made
and our upward momentum.
Digital
Digital is a core part of our customer
experience. We know digitally cen-
tric customers are happier with
Chase and stay with us longer. Since
2012, nearly 100 million transactions
that used to be done in branches are
increasingly migrating to faster and
easier digital channels. Of the 3.7
million new checking accounts we
acquired in 2015, almost 60% of
these were for millennial customers,
who often choose Chase because of
our digital capabilities. While millen-
nials clearly are a digital-first genera-
tion, research shows that approxi-
mately 60% of all consumers rate
mobile banking as an important or
extremely important factor when
switching banks. In fact, for new cus-
tomers of Consumer Banking, 65%
actively use mobile banking after six
months, up from 53% in 2014.
Today’s ATMs have come a long way
since they were first installed in 1969
– they now are another important
digital option for customers. Nearly
90% of transactions that historically
were performed in branches by a
teller soon will be possible at our
new ATMs. That’s a huge conven-
ience for our customers who want to
self-serve – we have nearly 18,000
ATMs around the country. Digital
also is a significantly less expensive
way to serve customers – it costs
us about half as much to serve a
digitally centric customer than all
other primary relationships. As
an example, the cost to deposit a
check with a teller is about 65 cents,
whereas a check deposited with mobile
QuickDepositSM costs pennies. And in
2016, our customers will be able to
withdraw cash using a PIN from
their phone rather than a debit card.
We’ve also made it easier than ever
for customers who prefer electronic
statements to receive them. Customers
now can easily access their state-
ments online on their desktops, on
their phones or other mobile devices
at their convenience. Today, more
than 60% of new checking accounts
2015 Performance Highlights
Key business drivers
$ in billions, except ratios and where otherwise noted; all balances are average 2015 YoY
Consumer &
Community Banking
Households (in millions)
Active mobile users (in millions)
57.8
22.8
1%
20%
Credit Card
New accounts opened1 (in millions)
Sales volume1
Loans
Net charge-o rate2
8.7
$496
$126
2.51%
(1%)
7%
1%
(24 bps)
Commerce Solutions Merchant processing volume $949 12%
Auto Finance Loan and lease originations
Loan and lease portfolio
$32
$64
18%
9%
Mortgage Banking
Total mortgage originations
Third-party mortgage loans serviced
Loans
Mortgage Banking net charge-os3
$106
$715
$204
$0.3
36%
(9%)
11%
(41%)
Business Banking
Deposits
Loans
Loan originations
$101
$20
$7
11%
6%
3%
Consumer Banking Deposits
Client investment assets (end of period)
$414
$219
9%
2%
1 Excludes Commercial Card
2 Excludes held-for-sale loans
3 Excludes write-os of purchased credit-impaired loans
bps = basis points