Fintech Spotlight: JPMorgan Chase Looks To Digital Banking Innovation

One driving force behind innovation is disruption.

That’s according to Allison Beer, the Chief Product Officer and Head of Customer Experience and Digital for JPMorgan Chase & Co’s JPM digital banking and innovation arm.

In a conversation with Benzinga, Beer spoke about emerging fintech trends, and how Chase is positioning itself as a holistic destination for digital spending, saving, investing, and borrowing.

Trends: In light of the COVID-19 coronavirus pandemic, adoption rates of fintech solutions — online, digital banking — soared.

As of the fourth quarter of 2020, Chase has over 55 million digitally active customers, up nearly 5% on a year-over-year basis, and 41 million mobile active customers, up 10% year-over-year.

“Last year, accelerated digitization of all industries, including banking," Beer said in a statement on the rising interest in digital-focused solutions. “Customers are embracing, across the spectrum — across age groups, segments, geography — self-service and digital banking in a way they hadn’t previously.”

Specifically, Beer said customers have stepped up their embrace of Chase’s highly secure, and easy-to-use digital self-service channel, via the Chase Mobile Banking App.

“We’re seeing customers habituated into digital banking, in a way that would have likely happened, but may have taken longer. These trends … will continue to accelerate.”

Expansion: In ensuring that customers get full end-to-end service across all of its channels, Chase recently announced an expansion of its digital consumer banking arm, to Europe. The new digital bank will offer U.K. consumers a completely new banking choice, with tailored products and features.

“With each of the features that we launch, you see great customer adoption,” Beer noted. “We’re very careful, and make sure that we’re doing the right thing.”

Other large launches include an expanded credit product, allowing customers the tools to monitor and improve their credit, as well as enhanced budgeting and payments functionality.

“Customer adoption of budgeting has been huge over this period. Being able to set a budget, and track it, is really easy through visualization,” she said. “For Zelle, we’ve focused on making sure that real-time payments are easy, secure, and free.”

With Chase, users are able to have their peer-to-peer transactions land, in their bank account, for free, instantly, which is a large differentiator. Adding, other platform additions include QuickAccept, part of Chase’s contactless payment initiative, which allows businesses to accept payments, anytime and anywhere.

Investing: In a discussion on providing users with reliable access to markets, enabling them to take advantage of emerging market opportunities and volatility, Chase offers You Invest.

“We have a fantastic self-directed offer,” Beer said. “Our You Invest product is a competitor in this space and we’re constantly investing in it.”

Helping customers stay-up-to-date with market opportunities, Chase also offers research and education tools that are unmatched, according to Beer: "It's about making sure investors are making good decisions for their risk appetite, not chasing trends, but investing for the long-term.”

Going Forward: Chase is looking to continue investing in research and development, heavily.

“There are a few things we’re focused on. One, making our digital channels work harder for our customers, giving them advice in the context of their financial picture,” Beer noted in reference to Chase’s ability to predict recurring payments and nudging customers to save and invest enough through advisory and digital channels.

“The other thing is making everything real-time and automated. Making sure every single pain point is easier and more straightforward.”

The ultimate goal — to serve a broader number of households with inclusive banking solutions.

“It’s really about providing a broad spectrum of solutions to allow households to better have control over their finances," said Beer.