Bank Automation News
  • × Bank Automation News: Complimentary - 1 MonthBank Automation News: Complimentary - 1 Month 1 × $0.00

Subtotal: $0.00

View cartCheckout

Subscribe
  • News
  • Data
  • Transactions
  • Events
    • Bank Automation Summit
    • Apply to Speak
    • Apply to Demo
  • Podcast
  • WEBINARS
    • On-Demand Webinar: Emerging fintechs: New technologies you need to know now
    • Webinar Library
Log In
No Result
View All Result
  • AI
  • Business Banking
  • Core
  • Cloud
  • Payments
  • Retail Banking
  • Risk & Security
Bank Automation News
  • News
  • Data
  • Transactions
  • Events
    • Bank Automation Summit
    • Apply to Speak
    • Apply to Demo
  • Podcast
  • WEBINARS
    • On-Demand Webinar: Emerging fintechs: New technologies you need to know now
    • Webinar Library
BAN PLUS
Log In
No Result
View All Result
Bank Automation News
No Result
View All Result

As U.S. Banks Shut Branches, JPMorgan Leads Shift Toward Wealthy

Bloomberg NewsbyBloomberg News
March 6, 2019
in Business Banking
Reading Time: 5 mins read
0
Share on Facebook

Aberdeen, Washington, is a far Northwest outpost of JPMorgan Chase & Co., with one lonely branch perched near the Pacific, 2,900 miles from Wall Street.

Now the bank is planning to depart the rainy timber town that gave the world Kurt Cobain. The next-closest Chase branch is 40 miles away.

At the same time, JPMorgan plans to open 70 branches in the vicinity of the other Washington — the wealthy national capital. Among the new locations is suburban McLean, Virginia, the 25th richest town in the U.S.

These two different communities are in fact part of the same story. For years the nation’s largest banks have been shrinking their vast branch networks. They’ve been cutting back faster in relatively poor neighborhoods than in more affluent ones.

Even with the spread of online banking, JPMorgan and its rivals have said storefronts remain a critical part of their growth. The banks say they’re committed to serving all their customers regardless of income, a requirement of the Community Reinvestment Act.

Small Businesses

Yet, consumer advocates warn that the closings risk widening the wealth gap by leaving scores of low-income areas with less competition for services such as personal checking and small-business lending. A 2014 study by an MIT economist found that, even with other banks nearby, branch closures in low-income and minority neighborhoods made it harder for local businesses to get loans.

“Bank branches are a crucial part of financial access,” said Scott Astrada, a policy advocate at the Center for Responsible Lending. “The argument that we all live in this digital society so we don’t need bank branches is completely false.”

No major bank exemplifies the industry trend of leaving lower-income areas better than JPMorgan.

National Expansion

The biggest U.S. bank announced plans a year ago to spend billions to open 400 branches and boost lending in a national expansion that would extend the lender’s profile to new states for the first time in a decade.

Related Story: JPMorgan’s Secret Punishment: U.S. Halted Its Growth for Years

In the 13 months through January, JPMorgan has applied to open 185 new branches, with 71 %  of them in more affluent areas. The bank in that time has given notice to regulators of its intention to shut 187 branches. About half of those are in neighborhoods where household income is below the national median of $60,336, according to a Bloomberg analysis of regulatory and U.S. Census data.

Anne Pace, a JPMorgan spokeswoman, said a national view of the data is skewed because it assumes that family income in all communities is the same.

“In our footprint, Chase has significantly more branches and more deposits in low- to moderate-income neighborhoods than any other competitor,’’ Pace said in an emailed statement. “Even when we’ve consolidated branches, we continue to grow market share in those neighborhoods. In the vast majority of cases, the next closest branch is less than two miles away.’’

JPMorgan said it prefers a measure that excludes states where it doesn’t have a presence. By that measure, the firm had 26 % of its branches in low- and moderate-income areas, while Wells Fargo & Co. and Bank of America Corp. each had 29 %, according to data from JPMorgan. In response to questions from Bloomberg, JPMorgan said 30 % of its new branches will be in such communities, up from an earlier pledge of at least 20 %.

Consumer Banks

Nationally, banks have shut 1,915 more branches in lower-income neighborhoods than they’ve opened in the four years through 2018, according to S&P Global Inc. The three largest consumer banks — JPMorgan, Wells Fargo and Bank of America — led the way, S&P said.

JPMorgan has consistently had a smaller proportion of its branches in low- and moderate-income areas than its two rivals over the last 12 years, Federal Deposit Insurance Corp. data show.

Read more: Banks’ $21 billion tax windfall doesn’t stop their job cuts

Wells Fargo, whose growth is constrained as punishment for millions of fake accounts it opened without customer knowledge, serves “significantly more markets than any other national bank peers, including in underserved communities,” said spokeswoman Hilary O’Byrne.

Aberdeen Branch

Approximately one-third of Bank of America’s network is in low- and moderate-income neighborhoods “and that has been consistent over a number of years,” said spokeswoman Betty Riess.

Bank of America also shut its only Aberdeen branch, just across the street from JPMorgan’s — part of a cluster of banks that once vied for deposits during the timber boom.

After taxpayers and the Federal Reserve rescued the country’s financial system, government regulators stifled JPMorgan’s growth for almost six years due to misdeeds, Bloomberg reported. The Office of the Comptroller of the Currency’s lifting of the ban last year paved the way for the expansion.

Banks are required by the Community Reinvestment Act to serve communities across a range of incomes, but the OCC has been slow to police them. The agency is supposed to examine them every four years, but none of the three biggest banks has undergone testing since 2013. An OCC spokeswoman said it will begin JPMorgan’s next examination this year. The agency declined to comment further.

CRA Revisions

Treasury Secretary Steven Mnuchin and OCC head Joseph Otting have been pushing for revisions to the CRA test that some say would weaken the law by making it easier for banks to pass.

In poor and minority neighborhoods, the number of new small-business loans declined 13 % in the years after a branch closing, according to a 2014 paper by Hoai-Luu Q. Nguyen, then an economist at the Massachusetts Institute of Technology.

Lending in those communities tends to be driven by relationships, so once the bankers leave, residents can face higher barriers to credit access, Nguyen said.

Wealthy Customers

At a Feb. 26 investor conference, JPMorgan’s chief executive officer, Jamie Dimon, said that the bank’s “biggest opportunity” is its wealthy customers. The number of Chase Private Client branches, located inside Chase storefronts, soared from just one in 2008 to about 3,000 today. JPMorgan has captured just 1 % of the market catering to customers with at least $250,000 in assets, Dimon said.

“It’s not that hard to say, ‘Why not 10 %?’” he said.

JPMorgan isn’t planning to close branches only in low-income areas. Seven locations in Westchester County, New York, are slated to go, as well as in well-to-do suburbs outside Chicago, Houston and Los Angeles.

Likewise, some planned openings are in less affluent communities. Many of those, however, are in or close to universities.

A portion of JPMorgan’s proposed branch openings in the Washington area are in low-to-moderate-income communities, such as Wards 7 and 8, east of the Anacostia Freeway.

The rest will dot affluent neighborhoods. Two branches will bookend a mile stretch of popular Wilson Boulevard in Arlington, Virginia. One will sit across from a Whole Foods Market and the other a half-block from the upscale fast-casual lunch spot Sweetgreen. About a dozen banks already have locations along the strip.

“There’s a disconnect,” said Stephan Weiler, director of the Regional Economic Development Institute at Colorado State University. “They’re branching out in places that have much higher potential in terms of their balance sheet, but they’re also not providing capital to precisely those areas that need it the most.”

published Mar 6, 2019, 5:00:23 AM, by Michelle F. Davis (Bloomberg) 

Tags: Bank branchesBloombergexpansionFeaturesJP MorganSales & Marketing
Previous Post

Movers and Shakers: Notable March Hires in Fintech and Digital Banking

Next Post

Gen X and Boomers, Not Millennials, Drive P2P Adoption

Related Posts

The HSBC Holdings Plc logo is displayed on the facade of the company's headquarters in Hong Kong, China, on Friday, Feb. 18, 2022. HSBC is scheduled to release earnings results on Feb. 22. Photographer: Paul Yeung/Bloomberg
Business Banking

HSBC launches tariff tool to aid SMBs

May 9, 2025
boston
Business Banking

SMBs in tech-forward cities embrace AI

May 7, 2025
smb ai
Business Banking

Podcast: How JPMorgan uses AI to support SMBs

April 28, 2025
Next Post

Gen X and Boomers, Not Millennials, Drive P2P Adoption

Stay Informed with Our Newsletters

EMERGING FINTECH DIRECTORY

Emerging Fintech Directory

The Buzz Podcast

RETAIL BANKING

Huntington Bank’s new branch in Spartanburg

Huntington Bank resolves outage

May 7, 2025
bank

Barclays, Banco Santander, Lloyds plan product expansion

May 5, 2025
satisfactiin

Online banks lead FIs in customer satisfaction

May 2, 2025

SPONSORED

Just Released! 2025 Strategy Benchmark

May 1, 2025

Leverage Treasury Management to Turn Fraud Prevention Into a Strategic, Revenue-Generating Opportunity

April 1, 2025

A growth mindset in banking requires AI

March 27, 2025
  • About Us
  • Help Center
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Connect

twitter linkedin podcast podcast podcast
© 2025 Royal Media
No Result
View All Result
  • NEWS
    • All News
    • AI
    • Business Banking
    • Core
    • Cloud
    • Payments
    • Retail Banking
    • Risk & Security
  • DATA
  • TRANSACTIONS
  • EVENTS
    • Bank Automation Summit
  • PODCAST
  • WEBINARS
    • Upcoming Webinar
    • Webinar Library
  • SUBSCRIBE
  • Log In / Account

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • NEWS
    • All News
    • AI
    • Business Banking
    • Core
    • Cloud
    • Payments
    • Retail Banking
    • Risk & Security
  • DATA
  • TRANSACTIONS
  • EVENTS
    • Bank Automation Summit
  • PODCAST
  • WEBINARS
    • Upcoming Webinar
    • Webinar Library
  • SUBSCRIBE
  • Log In / Account

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
__cfruidsessionCloudflare sets this cookie to identify trusted web traffic.
__RequestVerificationTokensessionThis cookie is set by web application built in ASP.NET MVC Technologies. This is an anti-forgery cookie used for preventing cross site request forgery attacks.
_abck1 yearThis cookie is used to detect and defend when a client attempt to replay a cookie.This cookie manages the interaction with online bots and takes the appropriate actions.
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
ak_bmsc2 hoursThis cookie is used by Akamai to optimize site security by distinguishing between humans and bots
ARRAffinitysessionARRAffinity cookie is set by Azure app service, and allows the service to choose the right instance established by a user to deliver subsequent requests made by that user.
ARRAffinitySameSitesessionThis cookie is set by Windows Azure cloud, and is used for load balancing to make sure the visitor page requests are routed to the same server in any browsing session.
AWSELBsessionAssociated with Amazon Web Services and created by Elastic Load Balancing, AWSELB cookie is used to manage sticky sessions across production servers.
bm_sz4 hoursThis cookie is set by the provider Akamai Bot Manager. This cookie is used to manage the interaction with the online bots. It also helps in fraud preventions
cf_ob_infopastThe cf_ob_info cookie is set by Cloudflare to provide information on HTTP Status Code returned by the origin web server, the Ray ID of the original failed request and the data center serving the traffic.
cf_use_obpastCloudflare sets this cookie to improve page load times and to disallow any security restrictions based on the visitor's IP address.
CONCRETE5sessionThis cookie is set by the provider Concrete5 web content management system. This is a necessary cookie used for maintaining the user session between pages.
connect.sid1 monthThis cookie is used for authentication and for secure log-in. It registers the log-in information.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
cookiesession11 yearThis cookie is set by the Fortinet firewall. This cookie is used for protecting the website from abuse.
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
ep20130 minutesThis cookie is set by Wufoo for load balancing, site traffic and preventing site abuse.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
PHPSESSIDsessionThis cookie is native to PHP applications. The cookie is used to store and identify a users' unique session ID for the purpose of managing user session on the website. The cookie is a session cookies and is deleted when all the browser windows are closed.
sxa_sitesessionThis cookie is used to identify the webiste visitor's session state across page requests on server.
ts3 yearsPayPal sets this cookie to enable secure transactions through PayPal.
ts_c3 yearsPayPal sets this cookie to make safe payments through PayPal.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
wordpress_test_cookiesessionThis cookie is used to check if the cookies are enabled on the users' browser.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
geosessionThis cookie is used for identifying the geographical location by country of the user.
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
langsessionLinkedIn sets this cookie to remember a user's language setting.
languagesessionThis cookie is used to store the language preference of the user.
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
optimizelyEndUserId1 yearOptimizely uses this cookie to store a visitor's unique identifier which is a combination of a timestamp and a random number. Different variations of web parts are shown to users that optimizes the website's user experience.
tableau_localesessionTableau uses this cookie to determine the preferred language and country-setting of the visitor - This allows the website to show content most relevant to that region and language.
UserMatchHistory1 monthLinkedIn sets this cookie for LinkedIn Ads ID syncing.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
AWSELBCORS20 minutesThis cookie is used by Elastic Load Balancing from Amazon Web Services to effectively balance load on the servers.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
__gads1 year 24 daysThe __gads cookie, set by Google, is stored under DoubleClick domain and tracks the number of times users see an advert, measures the success of the campaign and calculates its revenue. This cookie can only be read from the domain they are set on and will not track any data while browsing through other sites.
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gcl_au3 monthsProvided by Google Tag Manager to experiment advertisement efficiency of websites using their services.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
ajs_anonymous_idneverThis cookie is set by Segment to count the number of people who visit a certain site by tracking if they have visited before.
ajs_group_idneverThis cookie is set by Segment to track visitor usage and events within the website.
ajs_user_idneverThis cookie is set by Segment to help track visitor usage, events, target marketing, and also measure application performance and stability.
browser_id5 yearsThis cookie is used for identifying the visitor browser on re-visit to the website.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
sid1 yearThe sid cookie contains digitally signed and encrypted records of a user’s Google account ID and most recent sign-in time.
uid1 yearThis is a Google UserID cookie that tracks users across various website segments.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
WMF-Last-Access1 month 21 hours 5 minutesThis cookie is used to calculate unique devices accessing the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_dc_gtm_UA-1038974-41 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
_pxhdpastUsed by Zoominfo to enhance customer data.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
IDE1 year 24 daysGoogle DoubleClick IDE cookies are used to store information about how the user uses the website to present them with relevant ads and according to the user profile.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
049fc2ef5beb27056b07d9e4c4d13fd3sessionNo description
akaalb_http_misc_subssessionNo description
AnalyticsSyncHistory1 monthNo description
BIGipServermsocu-web-2-rr.webfarm.ms.com.10882sessionNo description
bm_misessionNo description available.
CX_4061522881 yearNo description
DCID20 minutesNo description
debugneverNo description available.
DrupalVisitorMobilesessionNo description available.
ep2033 monthsNo description available.
frbatlanta#langsessionNo description
geo_info1 yearNo description available.
GoogleAdServingTestsessionNo description
li_gc2 yearsNo description
loglevelneverNo description available.
loom_anon_commentsessionNo description available.
loom_referral_videosessionNo description
mkjs_group_idneverNo description available.
mkjs_user_idneverNo description available.
MorganStanley.ClientServ.Common.IPZipAccess.IPZipCookie.DEFAULT_COOKIE_NAMEpastNo description
NSC_us_nbsl-83+63+21+25-91sessionNo description
nyt-a1 yearThis cookie is set by the provider New York Times. This cookie is used for saving the user preferences. It is used in context with video and audio content.
nyt-gdpr6 hoursNo description available.
nyt-purr1 yearNo description available.
OCC_Encrypted_CookiesessionNo description
polleverywhere_session_id14 daysNo description
ppnet_2020sessionNo description available.
ppnet_2777sessionNo description available.
reuters-geosessionNo description
shell#langsessionNo description
smcx_0_last_shown_atsessionNo description available.
tableau_public_negotiated_localesessionNo description available.
vary1 monthNo description
www#langsessionNo description
X-Vive-CountrysessionNo description
xn_uuid1 monthNo description
Save & Accept
Powered by CookieYes Logo