While many banks are shuttering branches, JPMorgan is expanding.
They’ve tapped Pam Codispoti, creator of the Chase Sapphire Reserve, to manage their network of bank branches.
Business Insider recently spoke with Codispoti about her plans for JPMorgan’s network of brick-and-mortar banks.
She discussed dispelling millennial myths, a new type of bank branch Chase is launching this month, what she learned from the Chase Sapphire Reserve experience, and the do-or-die decision that went all the way to the top.
Across the country, banks are closing retail branches at a record pace. Most of them, that is.
JPMorgan, on the other hand, recently announced it would be expanding its network. It’ll add 400 new branches in 15 to 20 new markets over the next five years — an investment spurred in part by the savings from the recently passed tax law.
JPMorgan has, of course, culled some branches over the years, but far fewer than its peers — just 484, or 8.6%, since 2012, compared with more than 30% cut by competitors Citigroup and Capital One over the same period.
The firm expects the investment in branches to help its bottom line — a belief seemingly divergent from conventional wisdom in the banking industry, which is largely preoccupied with handling the customer migration to digital and mobile platforms, especially by millennials.
The job of captaining the investment belongs to Pam Codispoti, the JPMorgan exec who cracked the code on millennials with the creation of the Chase Sapphire Reserve.
Codispoti, who spent nearly 12 years in credit cards at American Express before joining JPMorgan in 2014, was promoted to oversee JPMorgan’s retail bank branch network back in October, departing from her post as the president of Chase Branded Cards.
She knows that there are many skeptics and naysayers about the future of retail branches, but she’s game to prove them wrong: “There is a myth out there that branch banking is dead, that branches are going away. I just don’t believe that to be true,” she said.
Business Insider recently spoke with Codispoti about her plans for JPMorgan’s network of brick-and-mortar banks. We talked about dispelling millennial myths, a new type of bank branch Chase is launching this month, what she learned from the Chase Sapphire Reserve experience, and the do-or-die decision that went all the way to the top.
The following has been edited for length and clarity.
Business Insider: JPMorgan just announced it is expanding its branch network. How did you decide to do this, and what’s the strategy behind it?
Pam Codispoti: We’ve been in 23 states, and for quite some time we have had an aspiration to expand into other markets. The Chase consumer businesses have been in some of those other markets. I come from the card business, that’s a national business — we’re in lots of markets.
And so the branch is kind of the hub in many ways, the heart and soul of our consumer business. So to be able to now open branches in places like Washington, D.C., Boston, and Philadelphia …read more
Source:: Business Insider