Andrea Principe, managing director of the Northeast division for consumer banking at Chase, spoke at the Future Branches conference in Boston about the challenges facing the banking industry, such as sustaining core deposits, deepening customer trust, and fostering relationships. She emphasized the importance of learning from failures, reengaging with customers, and creating exceptional in-person experiences.
There is an increasing demand to balance technology with human interaction in branch banking and to adapt branch networks to meet the diverse needs of various customer segments. Strengthening community development initiatives is also crucial for building trust and providing support to underserved communities.
In a conversation with Janis Avila, a customer experience strategist and former banker, Principe highlighted Chase’s significant presence in the Tri-State area—New York, New Jersey, and Connecticut—and advocated for continued investment in both digital platforms and physical branches. Chase plans to open 500 new branches over the coming years and refurbish 1,700 out of its 4,800 existing branches.
Principe noted, “We continue to invest in our branches because we know that our clients come. Chase is the first bank to establish a presence in all lower 48 states, a milestone we achieved in the last couple of years, and we have nearly a million clients visiting our branches daily. The feedback indicates that branches remain important to our customers.”
Countering the notion that younger generations avoid physical bank branches, Principe revealed that 84% of their Gen Z customers and 67% of millennials still visit brick-and-mortar locations. She stressed that when customers face significant life decisions, they prefer to discuss them in person with a representative.
“While opening accounts may not seem like a big life decision for us, it is for many clients. This includes accounts, IRAs, retirement options, home lending, and small business services. Approximately 85% of our small business clients visit our branches at least once a month,” Principe explained.
Chase is redefining its hiring practices to enhance client service, emphasizing the development of employees’ skills and competencies, particularly in serving small business clients. Their “One Chase” team approach integrates specialists from various departments to provide comprehensive client service.
Principe stated, “We engage our employees in building relationships with clients and have revised our hiring process and job roles accordingly.” Instead of traditional tellers, Chase now hires what they call associate bankers, who not only assist clients with transactions but also help them become more digitally savvy.
To further enhance service quality, all bankers are trained in relationship banking and must obtain relevant licenses. Principe emphasized, “When a business client walks through the door, we want our team to approach them rather than retreat. To do that effectively, we must equip them with the necessary skills and tools.”
Principe also discussed Chase’s initiative to support small businesses in low- to moderate-income (LMI) communities, launched in 2019, which focuses on building trust through dedicated community branches, financial workshops, and consulting. This effort has resulted in higher deposit growth and approval rates in these areas, benefiting over 4,000 small businesses.
Chase has seen deposit growth exceed 10% in branches offering small business consulting services, owing to the guidance provided in areas like marketing and operations. Principe noted that while small business owners may be skilled in their craft, they often lack financial knowledge and business management skills.
In conclusion, Principe affirmed that Chase remains committed to expanding its branch network, underscoring this strategy’s importance to the bank’s overall growth. “We are dedicated to our branches. When Jamie [Dimon] speaks, he always highlights the significance of branches. We are opening our third community branch in New York shortly, illustrating our commitment.”
With 60% of the U.S. population living within a 10-minute drive of a Chase bank, Principe aims to increase that figure to 70%. She emphasized that the focus when establishing new branches should be on serving the right communities and customers.
As the largest bank in the U.S. by total domestic deposits, Principe shared that Chase branches typically become profitable within an average of five years after opening, with some achieving profitability in just three years.