Are you a JPMorgan Chase customer with less than $100,000 dollars deposited? Then you are not making the bank enough money and it probably wants nothing to do with you going forward.
Speaking to investors today, Todd Maclin, the bank’s chief executive officer of consumer and business banking said that 70% of customers with deposits below that $100K line are not profitable for the bank after new regulations put a cap on lenders’ fees.
Thus, Chase intends to focus on making nice with the wealthy customers.
“Lost revenue has to be replaced with higher share of wallet and customer penetration,” Maclin explained. “You have to get your costs and where you spend your time, to the fullest extent possible, more in line with where the opportunity is.”
According to Bloomberg, Maclin described a “significant opportunity to deepen affluent relationships” and a “limited opportunity to deepen relationships” with us poor souls who don’t have six figures stashed away in the bank.
That being said, Maclin said will “celebrate” on the day it can charge $20/month just for having a checking account.
“When the world lets us charge something more akin to your gym membership or your card, we’ll be right there with them,” he told the investors. “In this environment, we’re just not going to rock that boat, and we have a brand and a franchise where we can make it up other ways over time.”
JPMorgan Clients With Under $100K Unprofitable [Bloomberg]