The Chase Manhattan bank brand is the retail arm of JPMorgan Chase, which deals primarily in commercial and retail banking across the United States, and credit card services in both the US and Canada. In 2012 the Consumer and Community banking division was formed after the fusion of Chase’s three retail business service branches: Consumer and Business Banking, Mortgage Banking and Card, Merchant services and Auto finance. The current CEO of the CCB division Gordon Smith affirms that this merger of units has expanded the scope of their banking platform, which now serves 61 million households and 4 million small businesses. JPMorgan Chase & Co is currently reaping the rewards of this synergy and the substantial investments it has made into improving the availability and innovation of its credit cards business, has meant it maintains the number one credit card issuer and number two mortgage originator and servicer in the U.S.
In 2018, the CCB division has gone from strength to strength, with particularly impressive successes in the Consumer and Business Banking unit, due to increasing net interest income stemming from higher deposit margins and growth. Likewise, the Card and Merchant Services units have prospered from the higher Card net interest income on margin expansion and loan growth, which was a notable contributor to top and bottom line growth.
Looking forward into 2019, it will be interesting to see whether JPMorgan Chase & Co is able to globalise its AdvancingCities programme which is currently being tested in underprivileged neighbourhoods in Detroit, Chicago and Washington D.C. This 5-year initiative was announced in September 2018 and will be financed through $500 million of internal capital and a further $1 billion of outside capital that will be divided between philanthropic investments and the sustainable long-term AdvancingCities Investment Fund. Although there have been proven accomplishments made in improving the effectiveness of the model so as to ensure that it delivers inclusive economic growth, it has yet to be tested on a global scale, so there are obvious doubts to whether it will be able to work together resourcefully with local governments and businesses to reduce the persistent economic and financial barriers in deprived cities and neighbourhoods.