JPMorgan Chase & Co is expanding its brand of Sapphire credit cards into payment accounts with the largest bank in the US to attract ever-richer millennials as lifelong customers, it said Wednesday.
NEW YORK: JPMorgan Chase & Co is expanding its brand of Sapphire credit cards into payment accounts with the largest bank in the US to attract ever-richer millennials as lifelong customers, Wednesday said.
The bank is changing its Chase Premier Platinum accounts, which require a minimum of US $ 75,000 in deposits and certain investments, in Sapphire Banking accounts, spokeswoman Elizabeth Seymour said by phone.
The new accounts offer special access to sports and entertainment events, as well as the Sapphire Reserve credit cards.
The reserve card became a big hit with millennials who wanted to travel when it was introduced in 2016 with generous registration and spending bonuses and access to travel lounges.
The new bank accounts will also eliminate some of the costs that may irritate consumers, including those for transfers and foreign exchange at foreign ATMs.
Later this year, the bank will offer its Ultimate Rewards points, which it pays for credit card payments, as an incentive premium for new customers at Sapphire Banking accounts, Seymour said.
The new account is another example of JPMorgan that lowers prices and offers additional services to attract customers and gain market share from competitors.
On Tuesday, the bank rammed the discount brokerage industry by offering free exchange transactions for self-managed accounts via its Chase mobile banking app.
The launch of the Sapphire Reserve card disrupted high-end credit card activities and resulted in higher than expected start-up costs for JPMorgan.
JPMorgan has also taken market share in securities lending with aggressive pricing. The company has won commercial banking business by opening new offices in cities outside the established markets.
JPMorgan has previously used ties with Sapphire Reserve to promote its mortgage loans.
The bank strives to increase its consumer deposits faster than the sector. Cheaper deposits are becoming more valuable for banks because the interest on loans increases.
(Reporting by David Henry in New York; Montage by Richard Chang)