How JPMorgan Is Preparing For The Next Generation Of Consumer Banking

JP Morgan Chase is rebuilding its consumer business model to create a "digital everything" strategy that trades short-term losses for long-term profits. With $2.6 trillion in total assets, JP Morgan Chase is the largest bank in the US. Led by Chairman and CEO Jamie Dimon, the bank is undergoing a transformation, moving away from offline legacy systems and into the digital age. Over the past two years, the bank has spent nearly $20B to scale its technology and prepare itself for the next generation of banking. Today, JPMorgan (JPM) is using its capital and scale to build an entirely digital bank. This is in part because customers no longer need to rely on banks for financial services -- 60% of US bank customers say they are willing to try a financial product from a tech firm they already use, and that number rises to 73% for customers aged 18 -- 34. This trend towards digitization is already starting to play out as fintechs circumvent banking licenses by partnering with issuing banks to offer checking account-like products. JPM's digital push, a theme it refers to as "Mobile First, Digital Everything," is showing positive early results. In Q2'18 JPM had about 48M active digital customers, while top competitor Bank of America had 36M.