Chase, the retail unit of JPMorgan Chase, has
unveiled plans to “dramatically expand” the bank’s relationship
with affluent customers to boost assets and double pre-tax
profits.
The bank said it wants to tap into the 8% of
Chase’s affluent retail customers that represent two-thirds of all
customers’ deposits and investments.
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Chase’s strategy is to earn more than its
current 5% share of those assets.
In June, Chase expanded its cards portfolio
with the launch of the OnePass Plus card and an update of the
Presidential Plus card as part of its ongoing alliance with
Continental Airlines.
The products, which hint at the bank’s focus
on high net worth individuals, bundle protection and rewards
benefits including the ability to receive a one-time 10,000 mile
bonus when customers reach $25,000 in spend on their card.
The bank has named Barry Sommers, the former
chief executive of JPMorgan Securities, as the chief executive of
the new venture, reporting to the head of retail financial
services, Charlie Scharf.
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By GlobalDataHe will also be responsible for the 2,700
financial advisers that serve Chase customers through more than
5,100 branches across the country.
“I am confident that our initiative will help
us serve customers better and could increase pre-tax profits by
$500m to $1bn annually,” Scharf said.
He added that the initiative is a strategic
priority for the bank “because we can do far more for the affluent
clients who already like doing business with Chase through our
branch and ATM networks.”
