JPMorgan's Dimon taking customer pricing hints from
Amazon
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[December 08, 2017]
By David Henry
NEW YORK (Reuters) - JPMorgan Chase & Co <JPM.N>
expects to offer more price discounts to its banking customers who buy
multiple products, similar to the way Amazon.com gives extras to its
Prime subscribers, chief executive Jamie Dimon said on Thursday.
"You are going to see more relationship pricing," Dimon said on a Wells
Fargo & Co webcast for its clients. "We give you more if you are at
different levels and tiers," he said - for example, some free stock
trades. "We may test different types of things."
Like others in the banking industry, JPMorgan gives discounts on
mortgages to clients with money at the bank. It has also given rewards
from its credit card program to mortgage borrowers.
It has to use such tactics to expand its business since it is barred by
law from growing via acquisitions in the United States, as long as it
holds more than 10 percent of insured deposits.

Earlier this year Dimon quoted Amazon.com <AMZN.O> founder Jeff Bezos as
saying "your margin is my opportunity" to show how the bank can try to
take competitors' customers with better deals.
Amazon is an important customer of JPMorgan's credit card business,
which processes many of its online payments and issues co-branded cards
for the retailer.
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Jamie Dimon, Chairman
and CEO of JPMorgan Chase & Co. speaks during the Milken Institute
Global Conference in Beverly Hills, California, U.S. on May 1, 2017.
REUTERS/Mike Blake/File Photo

Addressing other topics in response to wide-ranging questions, Dimon
also said he doubts JPMorgan will come up with a new breakthrough
banking product analogous to Apple's <AAPL.O> iPhone, despite spending
billions of dollars annually on new technology.
But he said that investment should pay off by satisfying increasing
customer demand for mobile banking services. Banks believe they can save
money with more digital processing of transactions.
After questions about gender relations, Dimon, who has recently promoted
women to make up half of the bank's operating committee, said some
employees have asked him how to respond to inappropriate behavior by
clients.
He said he advised them to "tell the client don't touch me again...Be
willing to fight. Be willing to fight back."
(Reporting by David Henry, Editing by Rosalba O'Brien)
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