Washington takes center stage in bank branch battles

[December 12, 2018]   By David Henry

WASHINGTON (Reuters) - JPMorgan Chase & Co <JPM.N> has made a splash this year in Washington, D.C. opening branches for the first time in the nation's capital.

Smaller branches, ATM kiosks and mobile phone apps are allowing the bank to go into markets more quickly and for less money now than five years ago, JPMorgan executives said.

Banks can venture out now because they have cleaned up regulatory problems since the 2007-2009 financial crisis. President Donald Trump's tax cut left them with cash to invest.

Washington is a prime battle ground, and JPMorgan considers the region the third biggest in the country by population and gross domestic product.

No bank dominates. The top three hold between 14 percent and 17 percent of deposits in the region, compared with Chase’s 32 percent share in the New York City area. (Graphic: https://tmsnrt.rs/2SCaVzC)

"If you want to be the premier American bank you want to be in all of the key cities," said Ken Thomas, a branch location consultant.

A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/File Photo

Washington offers banks the chance to build brands and make life-long national customers from people passing through as students or employees of changing governments

"You have a microcosm of America here in D.C.," said Thasunda Duckett, the CEO of Chase Consumer Banking. "It is booming and it is a place we have always wanted to be."

JPMorgan executives plan to build 70 Chase branches in Washington and Baltimore. Five years ago they probably would have set out to match the 150 Washington branches of Bank of America one-for-one.

Instead, they expect to make up the difference with 150 ATM locations and their mobile phone app and website.
 

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