NEW YORK –The nation’s largest bank plans to make a big investment in new branches.
JPMorgan Chase & Co. announced it will build up to 400 new branches to expand into 15 to 20 markets in several new states. The building is part of an investment plan that includes $15 billion of new lending and nearly $5 billion in spending, with JPMorgan Chase crediting the expansion in part to the reduction in U.S. corporate taxes and a more favorable regulatory environment, according to the New York Times.
Thasunda Duckett, chief executive of Chase Consumer Banking, told the Times that even though its customers do 80% of their transactions online or at ATMs, “Seventy-five percent of our deposit growth comes from customers who use our branches. Customers still visit branches, on average, four times a quarter.”
JPMorgan Chase declined to say which markets it intends to expand into, but the Times pointed out it does not have branches in Boston, Philadelphia or Washington, D.C.
Duckett told the Times the branches are critical to establishing the bank’s presence locally and serve as hubs for mortgage lending, asset management and services to small businesses, such as accepting daily cash deposits.
JPMorgan Chase currently has 5,130 branches in 23 states, and in recent years has actually contracted by shuttering branches.
JPMorgan Chase recently estimated the federal tax cuts will save it more than $4 billion annually.