JPMorgan Chase Expanding in Northern California

By Natasha L. Foreman, MBA

With a focus to add market share in the “nation’s largest state”, JPMorgan Chase & Co. intends to open between 25 and 30 branches in Northern California.
The Oakland Tribune reported that JPMorgan Chase has been considering expanding in various counties throughout the Bay Area, where it currently ranks fourth behind Bank of America, Wells Fargo and Citigroup in deposit share. This expansion would create jobs for 250 to 300 people.
In addition to opening branches, the bank intends to install an estimated 600 ATMs by the end of next month in various ampm convenience stores throughout the state. That would give JPMorgan Chase a combined 4,000 ATMs in California.
Let’s see how their competitors respond to this strategic move.
Copyright 2012. Natasha L. Foreman. Foreman & Associates, LLC. Some Rights Reserved.
Source: Alan Kline, American Banker. Thursday, February 23, 2012.

The Overdraft Debate: What’s Your Position?

By Natasha L. Foreman, MBA

Jackie Stewart of Source Media reported that bankers, consumer advocates and other industry members met on Wednesday to hear officials from the Consumer Financial Protection Bureau outline their concerns about banking overdraft practices.
Sarah Ludwig, executive director of the Neighborhood Economic Development Advocacy Project accuses banks of failing to serve low-income people and communities through the abuse of overdraft protection. A senior VP at Bank of America Corp (B of A), Andrew T. Rowe explained that B of A communicated directly with their customers about the bank’s overdraft protection practices, and after hearing customer complaints about surprise charges for money they didn’t have, B of A made the decision to eliminate overdraft at the point of sale.
Citigroup Inc.’s managing director of global consumer banking, governance and external affairs, John P. Carey said that banks need to learn to distinguish between ATM and debit transactions with other forms of payment when dealing with overdraft protection, because customers would rather receive an occasional overdraft payment than a returned check
Ludwig wrapped up Stewart’s article stating that the goal should be “…fair, affordable, decent, beneficial, nonpredatory practices.”
What are your thoughts on this issue?
Source: American Banker, Thursday, February 23, 2012, Regulation & Reform section. Jackie Stewart: jaclyn.stewart@sourcemedia.com
Copyright 2012. Natasha L. Foreman. Foreman & Associates, LLC. Some Rights Reserved.