JP Morgan to Bring Branch Banking to Philly Area

In recent years, brick-and-mortar banking has been on the decline. Almost every major player in the game, regional and national alike, has closed branches in lieu of the internet- and mobile-based services that today’s customers prefer. That’s why JP Morgan, the nation’s largest banker, creates a monster splash today when they announced 50 new branches coming to Philadelphia, Delaware and southern New Jersey over the next five years.

Even though JP Morgan is a behemoth in the banking industry, it still has pockets of uncovered territory in the US. The greater Philadelphia metro area is one of them. The announced branches will signal JP Morgan’s dip into the waters of a new market. Wells Fargo, PNC and Citizens are currently the “big three” bankers in Philly by branch count, but with the big dog stepping in, it remains to be seen whether these smaller competitors can maintain a foothold.

Along with the branches will come 300 new jobs, not counting the construction of the new banking centers. In particular, the bank announced, it will set aside $5 million towards bringing banking to underserved areas of Kensington and to revitalize the area. The bank has dedicated $3 billion towards mortgage and small business lending in the Philadelphia area, with the addition of grants for low-and-moderate income communities.

“When we come in, we bring in the full force of J.P. Morgan” including philanthropy and affordable-housing efforts, JP Morgan Chase CEO Jamie Dimon said in an interview. He noted that Chase deals with one million customers daily, and remains dedicated to offering exceptional service to each one.

The Philadelphia expansion is part of a greater plan by JP Morgan, announced in January, that would see the banker using its corporate tax cut to open 400 new locations across the United States. Compare this to JP Morgan’s closest rival, Wells Fargo, who recently announced that they were planning to cut employee head counts by about ten percent to save costs.