JPMorgan is splashing the cash to land millennial customers.
In a presentation Tuesday, Gordon Smith, chief executive for consumer and community banking at the bank, explained how the bank is reaching 18 to 35 year old customers.
There’s some obvious channels: like Facebook, Twitter, Snapchat and Pinterest.
JPMorgan also sponsors tennis star Serena Williams, and partnered with animated movie Kung Fu Panda 3, periscoping from the red carpet.
The bank has earmarked $700 million in spending per year for innovations in payments, and said
it has signed a payments agreement with Starbucks to drive adoption of Chase Pay – and on marketing.
The spending does seem to work. According to Smith’s presentation, $100 million of marketing in consumer banking tends to generate 300,000 new households as customers, and $2.6 billion in deposits.
Who are those new customers? Millennials, mostly.
As the chart shows below, 57% of new checking account customers are millennials. These millennials are much more likely to use mobile banking, and while they still come into branches, they are less likely to do so than non-millennials.
The appeal of these primarily digital customers is clear. There are cheaper to service, and they are more loyal. That could prove a boon to JPMorgan’s business as these millennials grow older, and require additional services from the bank.
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