06 December 2016
Visit aciworldwide.com

JPMorgan Chase to cut 8000 jobs and shrink branches

26 February 2014  |  5836 views  |  4 JPMorgan Chase logo web screenshot

JPMorgan Chase has set out plans to cut around 8000 jobs this year as it shrinks branches and pushes self-service and the use of digital channels.

At its investor day, the bank confirmed that the headcount at its consumer and community banking division will be cut by 8000 to 149,000 people this year.

The decision has been partly attributed to the rise of digital channels for self service. Online and mobile log-ins have risen at a CAGR of 28% over the last three years. In contrast, teller transactions have fallen by four per cent CAGR.

Almost 10% of deposits are now made through mobile phones and this is resulting in considerable cost savings. A teller deposit cost the bank 65 cents, while a mobile phone-based QuickDeposit costs just three cents.

This shift in customer behaviour will see JPMorgan Chase continue to "optimise" its branches, making them smaller, with fewer tellers and more self-service options for customers.

However, unlike many other US banks - which collectively cut 1500 branches last year - there are no plans to reduce the size of the network.

At the investor day, chief executive Jamie Dimon also spoke about the competition his bank faces from rivals, including technology giants like Google and Apple that are targeting the payments world.

Technology firms "all want to eat our lunch," he told Bloomberg. "I mean every single one of them, and they're going to try."

Comments: (4)

Brett King
Brett King - Moven - New York | 26 February, 2014, 17:41

Now can I say "I told you so..."?

3 thumb ups! 3 thumb ups! (Log in to thumb up)
Jim Marous
Jim Marous - The Financial Brand - Cleveland | 26 February, 2014, 19:14 The savings in the cost of making a deposit electronically vs. in a branch can only be achieved if branches are closed. In addition, I am surprised that only 10% of the deposits are mobile. Banks need to change behaviors that are not good for the customer. That said, kudos for biting the bullet on staffing.
2 thumb ups! 2 thumb ups! (Log in to thumb up)
Jp Nicols
Jp Nicols - Bank Innovators Council - Seattle | 27 February, 2014, 02:40

I don't mean to make light of this for anyone who loses their job as a result of all this, but most of my best friends are now ex-bankers. Or "recovering bankers", as I like to refer to myself... Here come a lot more. Welcome to the club.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 27 February, 2014, 13:32

Cutting 8000 jobs, but not reducing the number of branches...this leaves me thinking that it's only a matter of time before it will happen.

Now, Brett what do you say about using those outlets for other, more creative uses? :)

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UniCredit embarks on Italian branch overhaul

UniCredit embarks on Italian branch overhaul

21 February 2014  |  5776 views  |  0 comments | 6 tweets | 2 linkedin
US banks collectively cut 1500 branches last year

US banks collectively cut 1500 branches last year

28 January 2014  |  5577 views  |  1 comments | 13 tweets | 4 linkedin
Wells Fargo and JPMorgan take contrasting stance on bitcoin

Wells Fargo and JPMorgan take contrasting stance on bitcoin

24 January 2014  |  11156 views  |  2 comments | 11 tweets | 14 linkedin
BofA to cut further branches as $500 million mobile investment pays off

BofA to cut further branches as $500 million mobile investment pays off

16 January 2014  |  8518 views  |  0 comments | 25 tweets | 14 linkedin
JPMorgan to exit pre-paid card business

JPMorgan to exit pre-paid card business

10 January 2014  |  9810 views  |  8 comments | 17 tweets | 9 linkedin
JPMorgan Chase looks for innovation lead

JPMorgan Chase looks for innovation lead

20 December 2013  |  7159 views  |  0 comments | 5 tweets | 5 linkedin
JPMorgan Chase says 465,000 pre-paid cards compromised by hackers

JPMorgan Chase says 465,000 pre-paid cards compromised by hackers

05 December 2013  |  6168 views  |  0 comments | 6 tweets | 13 linkedin
Bank of America employees picket video teller ATMs

Bank of America employees picket video teller ATMs

26 November 2013  |  5950 views  |  0 comments | 4 tweets | 5 linkedin
JPMorgan gets more than it bargained for in Twitter Q&A

JPMorgan gets more than it bargained for in Twitter Q&A

14 November 2013  |  5446 views  |  0 comments | 12 tweets | 3 linkedin
Barclays to open branches in Asda stores

Barclays to open branches in Asda stores

08 November 2013  |  6663 views  |  0 comments | 5 tweets | 11 linkedin
JPMorgan Chase names Dana Deasy CIO

JPMorgan Chase names Dana Deasy CIO

08 October 2013  |  6769 views  |  0 comments | 4 tweets
Was the London Whale a rogue trader?

Was the London Whale a rogue trader?

06 June 2013  |  6357 views  |  0 comments | 3 tweets

Related company news

 

Related company information

JPMorgan Chase

Related blogs

Create a blog about this story (membership required)
Find out moreVisit capgemini.comhttp://www.financialcrimerisk.fiserv.com/aml?r=finextra

Who is commenting?

A Finextra member Finextra Member Commented on: Guesswork alone can cr...
A Finextra member Finextra Member Commented on: Guesswork alone can cr...
A Finextra member Finextra Member Commented on: Guesswork alone can cr...
A Finextra member Finextra Member Commented on: Guesswork alone can cr...

Top topics

Most viewed Most shared
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
6656 views 12 comments | 15 tweets | 26 linkedin
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
6306 views comments | 23 tweets | 15 linkedin
Bank CEOs fret about ROI as startups drive IT arms raceBank CEOs fret about ROI as startups drive...
6183 views comments | 17 tweets | 21 linkedin
Amazon signs up tech firms to financial services cloud programmeAmazon signs up tech firms to financial se...
5991 views comments | 14 tweets | 15 linkedin
Big tech policy group calls on Trump to promote fintech innovationBig tech policy group calls on Trump to pr...
5379 views comments | 22 tweets | 11 linkedin

Featured job

to Six-Figure Base, Commission, Benefits
London, UK

Find your next job