JP Morgan Chase/Bloomberg
Clients started getting notifications last week that their accounts will be closed and funds will be transferred to Chase checking and savings accounts.
Sunday 09, June 2019
(Bloomberg) --JPMorgan Chase is closing Finn, its digital-only bank, a year after rolling out the brand nationally to try to lure younger customers.
Pablo Rodriguez, JPMorgan Chase’s Spokesman, said that the biggest US bank decided its consumer unit was better-equipped to meet those consumers’ needs under the Chase brand after finding that millennial customers do not necessarily want a separate digital experience.
Finn, which JPMorgan started offering nationally last June, featured a digital app as well as some access to a network of branches.
According to a notice sent to customers, the lender stated that as part of the switch, customers will have to download Chase’s mobile app and receive a new debit card but account numbers will not change.
With the reversal, JPMorgan is rejecting a strategy that lenders including Goldman Sachs Group and Ally Financial have been experimenting with as a way to reach younger customers and gather low-cost deposits without having to rely on physical branches.
JPMorgan had been trying to do both, but under different brands and through different mobile apps. Three months after introducing Finn in October 2017, it announced plans to expand its consumer bank nationally by opening 400 branches in new states for the first time in a decade.
“We learned a lot with Finn, especially about the power of the Chase brand and what customers want from the Chase mobile app, both in markets where we have a retail footprint and where we do not, we’ve also learned that our millennial customers do not need a separate brand or experience,” Rodriguez said.
Employees that worked in customer service and technology for Finn will be moved to other projects at JPMorgan, added Rodriguez.