NEW YORK (AP) — JPMorgan Chase plans to open at least 500 new branches in the next three years, the bank said Tuesday. It will reverse a decade-long industry trend where banks like JPMorgan and Bank of America have closed branches as fewer Americans need to cash a paycheck or pull money out of an ATM.
The new branches will be primarily located in cities such as Boston, Charlotte, Washington, D.C. as well as Philadelphia and Minneapolis. These are markets that Chase has expanded into in recent years, and are cities that are noticeably dominated by other big banks. For example Minneapolis is the dominant market for US Bank and Charlotte is dominated by Bank of America and Wells Fargo.
Chase says the multibillion dollar expansion will create 3,500 new jobs in these markets.
“When we open a branch, we’re not only investing in the financial health of residents, we’re committed to the health and vitality of the entire community,” said Marianne Lake, the bank's CEO of consumer and community banking.
With the widespread adoption of direct deposit for paychecks, digital banking services on smartphones and a lesser need for cash, most Americans now visit a branch a few times a year, usually to discuss significant changes in their lives or major financial plans, such as buying a home or planning for an expanded family.
This has made most newly designed branches as smaller, with more ATMs, more offices or break out spaces for bankers to sell financial products like mortgages or wealth management services.