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JPMorgan Chase posted a solid Q3 2017 overall, according to its quarterly earnings announcement on Thursday — just a day after it officially became the largest US bank by deposits, taking the top spot from Bank of America. Alongside these gains, the firm continues to see positive digital momentum.
Chase continues to post strong, but decelerating, growth in mobile banking.
The firm likely still has the largest mobile banking user base in the industry.Chase now counts 29.3 million active mobile banking users — that’s a 900,000 user increase from last quarter, and a step up from 26 million flat in Q3 2016.
But user growth is slowing down. Chase’s annual growth rate of mobile banking in Q3 2017 was just 12%. That’s a healthy number, but it’s substantially lower than the 18% it saw in 2016. This isn’t a bad thing — mobile banking is likely approaching saturation among interested users, something that’s corroborated by a similar slowdown hitting Chase’s peer banks. But as the growth rate slows to the rate of customer acquisition, it’ll become increasingly important for banks like Chase to leverage mobile to attract and engage users, rather than simply providing it for access.
That’s why the efficacy of the technology powering Chase’s digital banking is critically important.
Chase customers still value the branch. In the bank’s earnings call, CFO Marianne Lake noted that the bank’s branch network, which consists of over 5,000 locations, is still driving 75% of the bank’s deposit growth — making it a critical channel. But that’s expected to change, as consumer preferences shift toward mobile and digital offerings, and so Chase plans to adapt accordingly. In addition …read more
Source:: Business Insider