JP Morgan Chase 2015 Annual Report Download - page 61

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• Consumer relationships with
almost half of U.S. households
• #1 in primary bank relationships
in our Chase footprint
• Deposit volume growing at nearly
twice the industry rate
• #1 most visited banking portal in
the U.S. — chase.com
• #1 rated mobile banking app
• #1 credit card issuer in the U.S.
based on loans outstanding
2015 HIGHLIGHTS AND ACCOMPLISHMENTS
• #1 U.S. co-brand credit card
issuer
• #1 in total U.S. credit and debit
payments volume
• #1 wholly owned merchant
acquirer
• #2 mortgage originator
and servicer
• #3 bank auto lender
Partnerships
Over the past year, we announced or
renewed several significant partner-
ships. In our Credit Card business, we
renewed three key co-brand partners
– Amazon, United Airlines and South-
west Airlines. All have been longtime
partners, and our customers continue
to highly value these cards.
The economics on most partner
relationships in the industry are com-
pressing, but they still are significant
revenue generators for us and are a
strong component of our growth. Co-
brand new account volumes increased
almost 40% from 2012 to 2015. In
Auto Finance, we renewed a core part-
nership with Mazda North American
Operations, the U.S. sales arm for
Mazda vehicles, where we have been
its finance partner since 2008. We
also began a multi-year relationship
with Enterprise Car Sales to finance
consumers purchasing rental-fleet
vehicles, as well as other vehicles,
from more than 130 U.S.-based loca-
tions around the country.
Build, partner or buy
Competition is changing. We not
only have to compete with the large
and formidable competitors we
always have but also with new market
entrants both big and small. Large
technology companies, like Apple and
Google, are getting into the payments
space, and every day, new companies
are emerging to compete with subseg-
ments of our businesses. Many of
these disruptors are tapping into an
exceptional experience or user inter-
face that customers like. Across indus-
tries, whether retail, transportation or
banking, companies have excelled at
removing customer pain points with
simple experiences. The experience
itself has created loyalty.
Our strategy is to take that customer
insight to heart and strive to create
simple, largely digital experiences.
Last year alone, we introduced sev-
eral innovations. We were one of the
first U.S. banks to introduce touch
ID log-in for customers using the
Chase Mobile app on their iPhone.
We posted credit score information
online for our Slate® customers and
created a mobile app for our popular
Chase Freedom® rewards card. We
began to move customers to a new
chase.com site, which is easier and
faster for customers to use, and we
started using a digital token instead
of a customer’s account number to
more securely authorize transactions.
In addition, we explored partner-
ships and have found that many of
these new companies are excited to
work with us. Often there is a great
fit for both sides – we can quickly
apply their technology to benefit our
customers, and these companies
strengthen and grow from working
with Chase. As an example, we
announced a collaboration with an
online business lender to help us cre-
ate a new small business solution for
quick access to working capital. This
new, entirely digital oering, Chase
Business Quick CapitalSM, will provide
real-time approvals for small dollar
loans. Once approved, our business
customers will get next-day – or, in
many cases, same-day – funding to
run and grow their businesses. We’ll
still apply our same strong credit
standards but will give our custom-
ers a disruptively easy experience
and working capital product they
have been asking for.
We always are evaluating other
potential partners, and where it
makes sense to collaborate, white
label or directly acquire, we will do
so if we think it gives our customers
a better experience and makes Chase
stronger for the future. We can’t get
complacent for a minute, but with
our loyal customer base of nearly
58 million households and the ability
to invest, partner and innovate, we
will be very hard to truly disrupt.
Conclusion
Across CCB, we feel very well-
positioned for the future. The CCB
leadership team and I are so proud
to serve our customers and share-
holders and to lead this exceptional
business. Thank you for your invest-
ment in our company.
Gordon Smith
CEO, Consumer & Community Banking