JPMorgan Chase is to open 400 new branches employing 3000 people over the next five years as part of a $20 billion investment programme that will also bump up staff salaries by ten percent.
Currently, the firm has 5130 branches in 23 US states, serving 61 million customers across its consumer and community banking franchise.
“The heart of our company is our retail branches,” says Gordon Smith, CEO of consumer & community banking, Chase. “We are a leader in 23 states, but aren’t yet in major markets like Washington DC, Boston, Philadelphia, and many others. Now that we are planning to expand into new markets, we will hire thousands of new employees and help consumers and small businesses in these areas.”
The continued spend on bricks-and-mortar stands in direct contrast to the bank’s peers, who have been slashing branch numbers as more consumers switch to mobile and online channels. Earlier this month, Wells Fargo announced plans to close 900 branches over the next two years, reducing its network from nearly 5900 to around 5000 by the end of 2020.
JPMorgan Chase says the investment programme is made possible by recent changes to the US corporate tax system and a “more constructive regulatory and business environment”.
The $20 billion spend will also see the firm raise wages from between $12/hour and $16.50/hour to between $15/hour and $18/hour in over 100 cities. This will benefit 22,000 full-and part-time US hourly employees, notably in branches and customer service centers.
The plans additionally cater for an increase in community-based philanthropic investments by 40$ to $1.75 billion over five years and an increase in small business lending by $4 billion.
Jamie Dimon, chairman and CEO, JPMorgan Chase, says: “We are excited about further investing in our outstanding workforce and expanding into new US markets. When we enter a community, we enter it with the full force of JPMorgan Chase behind it. We hire people. We lend to and support local businesses. We help customers with banking, lending and saving. And we align our business and philanthropic efforts to help more communities benefit from a growing economy.”