Chase keeps opening new Charlotte branches, even as in-person visits decline
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JPMorganChase executives cut the ribbon on their 1,000th U.S. branch at 6540 Fairview Rd. in south Charlotte. Horne is in the light blue shirt. Photo: Alexandria Sands/Axios
JPMorgan Chase's top executives traveled to North Carolina this week to celebrate the opening of the 24th Charlotte-area branch, which is also the bank's 1,000th branch since embarking on a major U.S. expansion in 2018.
Why it matters: In the digital age, the days of face-to-face banking would seem dead, along with the brick-and-mortar likes of Blockbuster and bookstores. But Charlotte continues to see new bank branches popping up citywide, from newly constructed locations to others opening in converted Burger Kings and pizza parlors.
By the numbers: Since 2014, JPMorgan Chase's teller transactions have fallen 52%, while digital transactions increased 65%.
Yes, but: Nearly one million customers still walk into Chase branches every day, says Tom Horne, head of consumer branch banking at Chase.
- "Customers coming in wanting advice on investments, saving for the future, saving for their kids' colleges, starting a small business — that's grown," Horne tells Axios. "For a lot of those things, people want to talk to somebody — not just do it digitally."
- The company says more than half of its new checking accounts are opened in person.
- In Charlotte, branches are staffed with financial advisors, home lending experts, small business relationship managers — "anything a client needs," Horne says.
The big picture: The new SouthPark location on Fairview Road is part of Chase's much-larger plan to open 500 new branches nationwide by early 2027, including in underserved markets. The company says it's on track to meet that goal.
- In 2018, JPMorgan Chase was in just 23 states. By 2021, it was in 48.
- Chase started opening branches in the Charlotte market in 2020 and now has 46 in North Carolina, including 24 locally.
- Twenty-seven percent of branches are in low-to-moderate income communities. The company points to its locations on Freedom Drive and Beatties Ford Road as examples.
Zoom in: Chase has a team dedicated to strategizing new locations and pinpointing MSAs with the most opportunity.
- Deciding where to build a branch is a "deeply analytical process," Horne says, involving studying markets' affluence and population trends and examining corners with high traffic.
- "Does it make sense to put a branch on this corner or this corner?" Horne says. "Well, this corner because it's next to a Chick-fil-A. Branches always do well when we put them next to a Chick-fil-A."
The intrigue: Charlotte, as the second-largest banking center in the U.S., has more established players — like Wells Fargo and Bank of America — for Chase to compete with. But Horne says that's no stress to them.
- "We're not going to avoid a market where we think there's opportunity, just because there are other big banks there," he says.
- The Carolinas also have rapid migration. Often, existing Chase customers relocate here and are looking for their familiar bank.
What's next: Chase's goal is to place branches within reasonable driving distances of 75% of Americans. Some customers still travel over an hour to get to a branch, the company says.