JP Morgan Chase 2015 Annual Report Download - page 73

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Investing $100 million in
Detroit’s future
JPMorgan Chase’s roots in Detroit date back
to an early and successful public-private partner-
ship: the creation of the National Bank of
Detroit in the 1930s as part of the government’s
plan to restart the nation’s banking system.
Building on our record of commitment to the
city — and once again collaborating with the
public, nonprot and private sectors — we are
in the second year of our $100 million, ve-
year program to accelerate Detroit’s recovery:
• Financed more than $35 million in aggregate
loans to nance housing and mixed-use real
estate projects and to help small businesses
in the city expand and create new jobs
through the $50 million in two new funds
we seeded with our community development
lending partners.
• Provided critical nancial support to
the Detroit Land Bank as it expanded its
capacity to address blight in the city’s
neighborhoods.
• Developed rst-of-its-kind research that pro-
vides a comprehensive picture of Detroit’s
workforce system — the demographics and
skills of residents, labor market data on job
opportunities in the city and the existing
infrastructure of training providers — equip-
ping the city’s workforce leaders with critical
insights to inform their new vision and strat-
egy for Detroit’s businesses and workers.
• Grew Focus: HOPE’s nationally recognized
training program to prepare more than 250
Detroit residents for jobs in manufacturing
and information technology over four years.
• Expanded access to capital for Detroit’s
minority-owned small businesses by creat-
ing the $6.5 million Entrepreneurs of Color
Fund along with the W.K. Kellogg Foundation.
Managed by the Detroit Development Fund,
the fund will provide loans and technical
assistance, with a unique focus on the small
contractors that are critical to meeting the
demand for home renovation in the city.
• Boosted the growth of 10 Detroit-area start-
ups to stimulate economic development and
job growth through the $2.7 million Innova-
tion Fund launched by JPMorgan Chase and
Macomb Community College in 2014.
• Sent 36 JPMorgan Chase employees from
around the world to work intensively with
11 Detroit nonprots to help them solve
specic operational challenges and plan for
future sustainability since 2014.
New Skills at Work
While unemployment rates are falling in many
communities around the world, they remain
stubbornly high among young people, people
of color and those with multiple barriers to
employment. The reasons for this are complex
and so are the solutions. Our $250 million
New Skills at Work initiative supports data-
driven approaches to creating pathways to
middle-skill jobs, helping employers who are
struggling to ll openings and job seekers
looking for the education and training opportu-
nities needed in the 21st century economy.
The data-driven approach to this challenge is
compelling because it is achievable. In 2015,
we released reports analyzing labor market
data and trends in the United Kingdom, France,
Spain, Germany and in seven U.S. cities. These
reports provide the intelligence that employers,
training programs, policymakers and job seekers
need in order to assess supply and demand
accurately and to create workforce programs
that develop a pipeline of skilled talent. In
addition, we approved our rst program-
related investment, a $5 million, 10-year
low-interest loan to Vital Healthcare Capital to
nance healthcare services and quality front-
line healthcare jobs in low-income communi-
ties in the United States.
In early 2016, we announced New Skills for
Youth, a $75 million global commitment to
improve career readiness for young people by
investing in career readiness programs that
align with the needs of local industries.
By fostering eective partnerships, utilizing
data to drive better outcomes and providing
workers with the skills needed to land middle-
skill jobs connected to career pathways,
we are supporting some of the most powerful
strategies available to expand opportunity.
JPMorgan Chase Institute
In 2015, we launched the JPMorgan Chase
Institute, a global think tank dedicated to
delivering data-rich analyses for the public
good. The Institute utilizes our proprietary
data, augmented by rmwide expertise and
market access, to provide insights on the
global economy and oer innovative analyses
to advance economic prosperity.
The Institute released three reports in
2015 that shed new light on the behavior
of U.S. consumers:
• The inaugural report analyzed anonymized
transaction-level consumer data, focusing
on uctuations in income and consumption.
The Institute’s study revealed that while
U.S. households across the income spectrum
experience nancial volatility, most lack an
appropriate nancial buer to weather
these shocks.
• The Institute then analyzed consumer
behavior in response to the dramatic decline
in gas prices. Although prior research
suggested American consumers saved more
than half of their additional discretionary
income resulting from the gas price
decrease, the Institute research revealed
that, in reality, consumers spent roughly
80% of this extra income, primarily on
goods and services.
• In December, the Institute oered unprec-
edented insight into consumer commercial
spending within local communities, enabling
researchers to identify spending patterns by
consumer age, income and residence or by
the size and type of merchant.
Harnessing the unique assets of the rm and
the power of big data, the Institute is explain-
ing the global economy in a way that provides
decision makers with the necessary informa-
tion to frame and address critical issues.