A new JP Morgan Financial Centre branch-style living space in Palm Beach.
Courtesy: JP Morgan
JPMorgan Chase believes it cracked the code to manage more money for American billionaires.
It’s not a new financial product, a new software program, or an attractive sign-up bonus. Instead, it is a renovated take of an old concept, and in brick and mortar stores it is a new standard of service at the heart of its aspirations.
The bank is announcing 14 of these new formats of branches acquired when JPMorgan took over the First Republic in 2023 with Tony ZIP Codes in New York, California, Florida and Massachusetts, including NAPA, Palm Beach and Wellsley Hills.
This is part of JPMorgan’s push to convince wealthy Americans who already use Chase checking accounts or credit cards that the bank is ready to manage millions of people.
JPMorgan is the country’s largest bank by deposits and assets, and has the highest share in regions that differ from Wall Street transactions and retail credit cards. But one of the only major categories that isn’t a clear leader is wealth management. Friends like Morgan Stanley and Bank of America are beyond that.
According to Jennifer Roberts, CEO of Chase Consumer Banking, half of the 19 million wealthy households at US banks using JPMorgan have only 10% of their investment dollars.
“We have this enormous opportunity to convince our clients to build an asset management business, in addition to deposit relationships,” Roberts said in a recent interview.
JPMorgan has been backed by the acquisition of First Republic, known for catering to rich families living on either coast, and has decided to launch a new service tier. Called the JP Morgan Private Client, it is anchored in a new physical location, and will be 31 by the end of next year.
The service comes with its own mobile banking app, but its main attraction is its face-to-face experience. Instead of being handed over to multiple employees, like in the Chase Branch, JP Morgan Private Client members are assigned to a single banker.
“What really worked out for the first republic was to have a concierge level service that you owned for you if you had problems and you didn’t have to worry about it,” Roberts said. “This experience will provide a more sophisticated concierge-type service, as you would expect from a high-end hotel.”
Admission Price: There are at least $750,000 in deposits and investments, but Roberts said the bank is aiming for a balance of about $2 million to $3 million.
Quiet luxury
The new location, called JP Morgan Financial Centers, has a warm atmosphere and a bank-run chase branch and an earth tone colour palette that purposely sets them apart.
On a recent visit to Manhattan location, Vibe is a family office meet hotel with rising ceilings, living room style seating areas and meeting rooms filled with scattered art on the second floor.
The traditional line of bank tellers is gone. Instead, there is a concierge desk and a lonely ATM machine. Instead of lollipops, visitors will be offered a square of Dylan chocolate. The space is quiet except for the perrier open or the whir cracks in the espresso machine.
Palm Beach Reception at JP Morgan.
Courtesy: JP Morgan
“We’re looking forward to seeing you in the process of getting to know us,” said Stevie Baron, wealthy banking director at JPMorgan.
These conversations include planning long-term goals, looking into clients’ portfolios and seeing if they’re on track to get to them, he said.
The new, high-end branch-style elements can find a way to the regular chase branch, especially in high-income areas, especially the branch of around 1,000 people, Baron said.
JPMorgan executives say the bank’s branch network has already been a successful feeder into the company’s wealth management offering.
For those with a balance of at least $150,000, the new service tier, which is on top of the bank’s Chase Private Clients delivered at regular branches, is expected to support JPMorgan’s retail bank’s double client assets from $1.08 trillion, reaching March.
“Obviously, it’s a huge challenge because our clients already have established wealth managers, but that’s something we’ve really made strong progress,” Roberts said.
Come and come and come to everything
However, when trying to create a new, more luxurious brand from a mainstream brand, the difference between Toyota and its luxurious brand Lexus is not necessarily risk-free. Or at least, instantaneous confusion.
So far, two flagship financial centers in New York and San Francisco opened late last year. Roberts admitted.
“Our biggest challenge is that we don’t have anyone walking around because they don’t really understand what they are,” Roberts said. “So we just need to get recognition there.”
JP Morgan leans against the first part of its name to show the exclusiveness of the new branch, not chasing, but to show the exclusivity of the new branch, which may discourage people from walking down the door and starting a conversation.
“I just want to admit this. We’re never going to drive anyone away. Any customer can take advantage of our branch at any time,” Roberts said.
“We want people to understand how they can help walk, gain experience, meet professionals and support their financial goals over time,” she said.
