JPMorgan Chase will open 90 new branches in 2019 and add 700 new employees, the lender announced on Wednesday, an expansion that comes as rivals downsize their physical footprint in favor of online operations and others test out innovative approaches to their stores.
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Among the cities the New York City-based firm is building branches in are Charlotte, Minneapolis, Nashville and Pittsburgh, as well as near colleges, including Auburn University and the University of Nebraska. Roughly 30 percent will be built in low-to-moderate income communities.
“This expansion marks a major milestone for our firm by allowing us to serve more customers, small businesses and communities across the country,” consumer banking CEO Thasunda Duckett said in a statement.
Chase plans to pay the new entry-level employees no less than $15 per hour and all workers will receive full benefits, an offering that comes as top Democrats intensify calls for a national minimum wage hike and focus on workforce benefits ahead of the 2020 presidential primaries.
|JPM||JP MORGAN CHASE & CO.||114.39||-0.73||-0.64%|
|COF||CAPITAL ONE FINANCIAL CORP.||88.63||-1.30||-1.45%|
|WFC||WELLS FARGO & COMPANY||45.33||+0.03||+0.06%|
As Chase expands its physical presence across the U.S., scandal-ridden rival Wells Fargo plans to close 800 branches by 2020. While the cost-cutting measure comes as the San Francisco-based lender faces escalating legal costs, it is also a reflection of a shift in consumer preference to online and mobile banking.
Other financial firms are trying out new approaches to try to bring customers into their physical stores.
Over the past few years, Capital One has opened several coffee shop-bank hybrids, where individuals can access the typical banking services, use shared workspaces and purchase coffee and baked goods.
The offering – first introduced in 2011 – is now available in more than 11 markets across the U.S.