24/7 Wall St. Insights
- JPMorgan Chase & Co. (NYSE: JPM) has started opening branches for affluent Americans.
- They include specially trained staff and offer free umbrellas.
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JPMorgan Chase & Co. (NYSE: JPM) has started opening branches for the rich. They are not for the super-rich with hundreds of millions of dollars. They are for the moderately rich who have just millions. Research shows that over 10 million Americans have over $1 million in net worth, not including their homes.
Yahoo News reports that these first branches will open in San Francisco and New York. They will be called “financial center” branches. Eventually, there will be 30 locations, including in Massachusetts and Florida. These will target the “mass affluent” with over $750,000 in assets and deposits.
Yahoo News adds that these branches will be large and will have expensive furniture, special coffee, and free umbrellas. They will also have specially trained staff with expertise in high-end projects. (The free umbrellas are a particularly nice perk.)
Chase says it has 4,700 branches and will open another 500 branches and refurbish 1,700. To operate these, they will add 3,500 employees by 2027.
Chase’s overall branch plan goes against the industry trend. Wells Fargo, Citigroup, and Bank of America each have fewer locations than Chase. Online services and technology are widely expected to replace branches over time. These banks may follow the model if the Chase branches for affluent Americans work.
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