Marc Shillum’s Post

JPMorganChase is worth $595.73 billion dollars, a significant portion of that having been generated from over draft and late fees. New regulations limiting excessive fees pose a problem for some of the bank world’s biggest revenue generators, but CEO Marianne Lake has a solution. Lake says #Chase will be passing along those increased expenses to #customers… “It is not practical for many of the services to be free if we won’t be able to draw from those profit pools,” Lake said. Say goodbye to free checking at Chase. Will your bank follow suit? #banking #inflation #consumerprotection #financialregulation

Overdraft fees are a HUGE money maker for banks. Don’t believe me? Then consider this: JPMorgan Chase recently threatened to start charging fees for checking accounts if regulators move forward with their plan to cap overdraft fees (the bank currently charges a $34 overdraft fee, up to three per day, and the new CFPB regulation would cap it at $3-$14). And the bank’s reasoning? It’s not practical to offer so many free services if it can’t subsidize them with the profits from overdraft fees. And what were those profits just last year? 💰💰💰OVER $1 BILLION💰💰💰 Yup, that’s billion…..with a B! And those fees end up being almost exclusively charged to the financially vulnerable of our society (AKA the folks that can least afford to be paying them). #finances #money #overdraft

Last May, JPMorgan Chase purchased a majority stake in First Republic Bank, which was stumbling toward insolvency after many of its affluent clients pulled $100 billion in a single quarter. Nearly a third of the $92 billion in deposits JPMorgan received from the deal came from “large” bank accounts. While some First Republic branches were open the day the deal was announced, JPMorgan is now in the process of converting others into luxury branches, or what the bank is calling JPMorgan Financial Centers. A spokesperson from JPMorgan Chase tells Fortune that not only are the select locations being designed to cater to affluent customers, but that lessons learned will be fed back into JPMorgan’s broader network, which includes 4,900 branches in 48 states and the District of Columbia. Read more: https://lnkd.in/et_wYzVv

Millions of Americans could soon face charges for bank services, as stated by Marianne Lake JPMorganChase. The new rules limiting overdraft and late fees are expected to raise costs for all, not just Chase's 86 million customers. Chase plans to offset these changes by passing on expenses to customers, a move likely to be mirrored by other banks. The U.S. government is slicing the amount that credit-card issuers such as Bank of America and Capital One can charge for late payments by about three-quarters, to $8. The limit, issued by the Consumer Financial Protection Bureau, is part of the administration’s campaign to eliminate what it sees as unfair or illegal charges for consumers, which it says are stymieing efforts to bring down inflation. The administration is also expected to announce a “strike team,” operated by the Justice Department and Federal Trade Commission, to probe pricing of things like prescription drugs, groceries and housing. https://lnkd.in/enBUnAaM #Banking #FinancialNews #bank #jpmorganchase

A Damn Good Bank -- I've been very pleased to experience a bank that provides the sort of friendly, helpful and efficient service that I used to experience at First Republic Bank. Citizens Bank, N.A. was very smart in augmenting its strong team by hiring former First Republic bankers who were put off by the rapacious JPMorgan Chase culture. A lot of things have to be done right at the management level for a customer like me to receive the excellent service that I get. Let me count a few of the ways that this bank impresses me (each of which is a stark contrast to my prior bank): 1. Personal touch. My bankers have emails and phone numbers! When I call the bank, I connect within seconds to a live person and the authentication process is fast and easy. Emails and phone calls are returned! I can't tell you how pleasurable this is! 2. Good tech. Online banking is easy and intuitive. I was able to add my bookkeeper quickly and easily to my business account and exactly tailor permissions. The mobile app works. 3. Prudent. The bank is both friendly and smart in their customer onboarding. They gathered exactly the right information, asked the right questions. They manage risks without being jerks about it. In case you are wondering, this bank didn't ask me for an endorsement. I am doing this because I am genuinely impressed and appreciative. https://lnkd.in/ga3jZFs9

No More Free Checking Accounts For #Americans? In a significant shift that could impact all #American bank customers, JP Morgan Chase has announced potential changes to its #fee structure in response to new #regulatory measures. The regulations, introduced by the #CFPB, cap #overdraft fees at $3 and late fees at $8. These measures, while designed to protect #consumers, are prompting #Chase to reconsider its pricing for several currently free services, including checking accounts and wealth-management tools. According to #Chase, these new rules could drastically increase the cost of everyday banking for Americans if they are enacted in their current form. The #banking industry is reacting strongly to these changes. While a coalition of bank industry groups is appealing the decision, smaller and regional banks are expected to struggle to compensate for the reduced fee income. On the other hand, larger banks might offset this impact through their wealth management and investment banking sectors. This realignment could potentially open the market wider for #community banks, smaller banks and #FinTech companies, reshaping the banking landscape significantly. #payments #checkingaccounts #lending https://lnkd.in/eUssPT3K

Several major US banks, including Bank of America, Chase, US Bank, Truist, and Wells Fargo experienced deposit delays due to an error in the Automated Clearing House (ACH) system, affecting less than 1% of the daily ACH volume. Despite the inconvenience, it's important to note the reliability and significance of the ACH system, which processed nearly $38.7 trillion in transactions in 2022 alone. The error, a manual mistake at the payment processing network, is being actively addressed, signifying the resilience and adaptability of the financial industry. Open communication and collaboration are crucial in such scenarios to maintain customer trust and ensure continued functionality. While such incidents serve as reminders of the system's complexity, they should not undermine the ACH system's reliability. Please share your thoughts in the comments. Original article: https://lnkd.in/etYU7Zs4

JPMorgan Chase - a long, long read but well worth the time. Scale and size matter in banking in payments: "In 2022, the company took some of its profit and spent $14 billion on improving its own technology; only a dozen or so banks in the U.S. have more than $14 billion in revenue." #banking #payments #lending #creditcards #investmentbanking #technology

Can ANYONE please explain this? Where is a CAP ON FEES an EXPENSE? According to Chris Morris of Fortune... "Chase Bank customers could see some additional charges in the not too distant future. The Wall Street Journal reports the country’s biggest retail bank is warning that it might begin charging customers for their accounts. That would impact some 86 million customers. The potential charges, says Marianne Lake, CEO of consumer and community banking at JPMorgan, are a result of new regulatory rules that cap overdraft and late fees. Lake says Chase will be passing along those increased expenses to customers, which would put an end to now-free services such as checking accounts and wealth management tools." So, if I understand this, the "cap on overdraft and late fees" are classified as "increased expenses"? Please, you really smart MBAs and Accountants, help me understand which line items these fall under in your financial statements.

Great insights from The Wall Street Journal on the evolving banking landscape! Regulatory pressures are driving up banking service costs while credit availability is decreasing. Even major institutions like JPMorganChase are feeling the squeeze, as you can imagine, this impacts smaller organizations even more. At Ceto, we prioritize community banking and credit unions for their vital role in local economies. Unlike large banks, they drive economic growth at the grassroots level. We help clients strike the right balance between product pricing, profitability, and market needs. I love the phrase, "why guess, when you can know." For a deep dive into product profitability and competitive markets, feel free to get in touch with us! #Banking #CommunityBanking #CreditUnions #RegulatoryPressures #EconomicGrowth #CetoInsights