Unless you’ve been living under a rock, you’ve probably heard of JPMorgan Chase. It is, after all, a global leader in financial services and the largest bank in the U.S. Even though Chase is on top of the financial world, this hasn’t stopped it from reinventing itself into a digital beast. That’s why we chose them as our model for financial services digital marketing strategies to emulate.
According to a CB Insights report, JPMorgan Chase is moving away from offline legacy systems into a digital-everything strategy.
This strategy referred to by Chase as “Mobile First, Digital Everything,” has helped Chase reach 80 million customers on digital and mobile platforms combined.
So how is Chase doing this, and what can other fintechs and financial institutions learn from them? Below, we review the top five takeaways we can learn from JPMorgan Chase’s digital transformation.
1) Mobile First, Digital Everything is a Kick-A@# Digital Marketing Strategy
“Mobile first, digital everything.” It’s the JPMorgan Chase (JPM) mantra. CEO Jamie Dimon continues to position JPM as a technological pioneer in the banking space. That includes investing $20 billion in digital products, a new digital payments network, and its own cryptocurrency called Quorum.
The overhaul is a major step forward in an ever-competitive banking landscape. According to an industry report, only 25% of financial institutions had mobile capabilities as of 2017. JPM doesn’t just want to join the space. It wants to lead the way.
Unlike competing banks, JPM has not one, not two, but three mobile apps. It actually had four but recently closed its mobile-only bank, Finn. These three apps have nearly 11 million global users combined.
- Chase Mobile – a mobile banking app for deposits and payments on-the-go
- JPM Mobile – a wealth management app that lets people track their portfolio, make transactions, and read industry news
- Chase Pay – a digital wallet that uses QR-codes so that users can pay with their Chase cards
2) Rewards Are Attractive to Everyone
JPM has more than 48 million cardholders, which accounts for 16.6% of the credit card market share. No competitor has more than 12%. There are a couple of reasons for this, but none is larger than its Sapphire credit cards.
If you sign up for the Chase Sapphire Reserve Credit Card and reach the minimum purchase amount, you’ll earn 50,000 points. JPM lets you spend those points however you want, thanks to extensive co-brand partnerships. You can use rewards on flights, gourmet meals, or hotel stays (I used mine to buy AirPods Pro.)
The attractive credit card program with an elite rewards network serves as a doorway for JPM to gain new, lifelong members. Even though JPM takes a loss on the points promotion, it can nudge customers toward other Chase products. This isn’t speculation, either. According to JPM, the pilot program has a 90% retention rate.
Let’s say your financial organization has a community outreach program. You might meet with millennials in person and let them know you have free workshops about wealth-management strategies. Once you establish a connection with a person, it’s easier to introduce them to your financial products and services. Key takeaway: Lead with a relationship-first, relatable strategy to build millennial trust and loyalty.
3) Embrace the Power of Free in Marketing
Here’s an epiphany that will shock no one: people like things for free. While JPM hasn’t been a big name in retail wealth, it wants to change that. Investors can download ‘You Invest’ by JP Morgan and get 100 free stock or ETF trades in their first yea
This financial digital marketing strategy is viewed as a response to Robinhood, the Silicon Valley darling that offers commission-free trading to its 13 million users. Robinhood may not have the cachet of JPM, but it’s making waves in the fintech world. Why pay JPM’s $24.99 fee for online trades when you can use Robinhood for free, right?
JPM is the first consumer bank to embrace free trades for retail customers. You Invest, which launched in July 2019, is available to all 48 million of JPM’s online customers. According to JPM, the nearly fee-free platform will save investors 15 basis points or 0.15%.
4) Retaining Tech Talent Is a Top Priority
Great banks need great people. JPM knows this and is willing to spend the money to make it happen. The bank has implemented initiatives to attract, train, and retain top-tier technical talent. According to Lake, “We don’t want to ever be told one or two years from now that something strategically important wasn’t done because of budget limitations.”
5) Good Financial Digital Marketing Strategy Takes Time
Change takes time, especially when you have 5,000 locations and more than 250,000 employees. None of JPM’s financial services digital marketing strategies happened overnight. It’s been an incremental yet steady shift to “digital everything.”
Even after shuttering Finn, Dimon remains confident in the strategy. He told Yahoo Finance that, “We’re gaining share in millennials every day.” He’s right, too. Twenty-three percent of millennials are JPM customers. The young customer base bodes well for JPM, both in the short and long-term.
Do you want to stay relevant in financial services digital marketing?
Check out our blog post on emerging trends in financial services marketing.