Are you keeping an eye on JPMorgan Chase’s latest moves in the banking industry? If not, you should be. The financial giant is on a mission to expand its reach across the United States, with a focus on smaller cities and towns that are often overlooked by big banks.
Just three years ago, JPMorgan made history by becoming the first bank to have branches in all 48 contiguous states. Now, the firm is doubling down on its commitment to serve a broader range of Americans by opening new branches in areas that are less densely populated. This strategic approach is part of a multibillion-dollar expansion plan that aims to ensure that half of the U.S. population in the lower 48 states can access a branch within an “accessible drive time.”
Chairman and CEO Jamie Dimon is leading the charge, kicking off the firm’s expansion efforts with a bus tour across the Midwest. Dimon’s first stop is in Iowa, where JPMorgan plans to open 25 more branches by 2030. From there, Dimon will travel to states like Minnesota, Nebraska, Missouri, Kansas, and Arkansas, where the bank has plans to open over 125 new branches in total.
The goal? To establish an “optimal branch share” in these new markets, aiming for more than double the current levels in some cases. Jennifer Roberts, CEO of Chase Consumer Banking, emphasized the importance of physical branches in driving deposit share gains, pointing out that nearly 40% of the firm’s deposit share growth between 2019 and 2023 can be attributed to investments in new branches.
While many banks are reducing their branch footprint due to industrywide challenges, JPMorgan is bucking the trend by actively opening new branches. Higher interest rates have created funding cost pressures for banks, leading some to close branches to cut costs. In contrast, JPMorgan’s record-breaking profits have put the firm in a unique position to invest in expanding its brick-and-mortar presence.
When selecting locations for new branches, JPMorgan takes a balanced approach, considering factors like population growth, small business density, and foot traffic. Roberts humorously noted that if there’s a Chick-fil-A in town, JPMorgan wants to be there too, given the fast-food chain’s universal success.
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