JPMorgan Chase, the largest U.S. bank, is aiming to expand its consumer deposits to 15% of the national total, according to Marianne Lake, CEO of consumer and community banking.
As of June 2023, the bank held an 11.3% share of U.S. retail deposits. Lake revealed the bank’s ambition in an interview at the company’s New York headquarters.
Additionally, JPMorgan seeks to increase its share of the nation’s credit card spending from the current 17% to 20%.
Lake emphasized the importance of incremental gains in market share, stating, “Market share is a game of inches, and it is a very powerful game.”
Although the bank has not set a specific timeline, its strategies are focused on achieving these goals.
By the end of the first quarter, JPMorgan’s U.S. retail deposits totaled $1.1 trillion. Including wholesale deposits, the bank’s total deposits reached $1.96 trillion, slightly up from $1.95 trillion the previous year.
In comparison, Bank of America held $1.82 trillion in deposits at the end of the first quarter.
Lake highlighted JPMorgan’s ongoing investments in modernizing its infrastructure, leveraging AI, and enhancing payments and other business strategies.
“We’re continuing to build our capabilities to compete and win and investing in modernizing our infrastructure and data,” she said.
These investments aim to maintain the bank’s leadership over the next five to ten years.
JPMorgan’s acquisition of the failed lender First Republic last year added $92 billion in deposits. The purchase followed a series of bank failures that shook the industry.
Federal law typically prevents banks holding at least 10% of U.S. deposits from growing through acquisitions, except in the case of failed banks.
This acquisition, while controversial, was permitted as it met the government’s criteria for minimizing costs to the deposit insurance fund.
Lake stated, “If it’s important to the ecosystem, we would step in again,” but she expressed no desire for further bank failures.
JPMorgan is set to report its earnings on Friday, with investors keenly observing any updates on CEO succession plans.
Lake is one of several potential successors to Jamie Dimon, who has been CEO since 2006.
Other candidates include Jennifer Piepszak, Troy Rohrbaugh, and Mary Erdoes.
When asked if a woman might succeed Dimon, Lake responded, “It will depend on facts and circumstances at the time, but sure, the next JPMorgan CEO could be a woman.”
Lake also criticized proposed regulatory changes, such as the Consumer Financial Protection Bureau’s $8 limit on late payment fees for credit cards and caps on overdraft fees.
“There are significant costs to providing access to valuable and secure banking services,” she noted, warning that these changes could affect banks’ ability to offer services at current rates.
In the first quarter, JPMorgan’s consumer business generated $17.6 billion in revenue, the largest portion of the company’s total revenue of $41.9 billion.