JPMorgan Chase CEO Jamie Dimon says the bank is winning with millennials (JPM)

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JPMorgan Chase CEO Jamie Dimon told Yahoo Finance the firm is "gaining share in millennials every day," despite the segment’s infrequent branch visits. Dimon highlighted the popularity of Chase’s premium Sapphire cards as a major pull among customers under 40 — a segment that Chase has catered the cards to in the past.

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Chase is preparing to shutter Finn, its digital-only bank tailored to millennials, in August — but Dimon remained confident about the bank’s positioning with the customer segment. Dimon said the firm "took the best of Finn" and merged it with the Chase mobile app: Users will retain their account information and privileges associated with Finn, like no monthly service fees, and will be reissued new debit cards.

Investing in both its digital capabilities and physical network could allow Chase to appeal to young consumers in the short term and convert them to higher-value customers in the long run.

Chase’s digital channels are integral in driving customer acquisition and likely play a role in attracting millennials. Chase counts nearly 51 million active digital customers as of Q1 2019, 34.4 million of whom are active mobile customers — marking 11% annual growth in the latter. Chase said that over 80% of its transactions are completed through self-service channels like the Chase mobile app. Chase’s digital platforms are therefore integral to its growth and customer acquisition: The firm has opened nearly 1.5 million deposit accounts digitally since February 2018 and it’s reduced digital account opening time down to 3-5 minutes. And offering digital account opening likely helps Chase with customer acquisition among millennials, who are particularly digitally inclined. Further, Chase CFO Marianna Lake noted in the firm’s Q1 2019 earnings call that "25% of checking
, 40% of savings
now able to be opened digitally."
With its expanding network of branches, Chase can later upsell millennials to higher-value products that require a personal touch. In tandem with its digital innovations, Chase is investing in its over 5,000-location branch network: Chase plans to open 400 new branches, 90 of which will open by the end of the year, as part of a $20 billion investment plan. Households that frequently use branches have driven 70% of its deposit growth between 2014 and 2018 and they will ultimately be a valuable resource in upselling its millennial customers on more lucrative services, like mortgages, that also might require more personal attention in-branch. That will allow Chase to increase these customers’ lifetime value as they gain more spending power. At the same time, Chase might run the risk of heavily investing in its physical network to find that competitors prove capable of upselling customers on these products digitally.

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