CHASE BANK
History of Chase Bank
Chase bank commonly known as J.P. Morgan Chase Bank, N.A is a national banking institution which comprises of consumer as well as commercial banking subsidiary of the multinational banking company JP Morgan Chase (Plunkett 24). Initially, the bank used to be known as Chase Manhattan Bank before it merged with J.P. Morgan in 2002. This is to say that being the second largest branch in US, Chase Bank has managed to grow considerably through a series of acquisition and mergers. Writers who offer management case study help at Edudorm essay writing service notes that the bank has at least 5,400 retail banking offices. Like any other big banking institution, it offers at least 5,100 branches with 16,100 automated teller machines (ATMs) nationwide. As of 2014, J.P. Morgan Chase has about 265,359 workers. Equally, it offers banking services in more than 100 states. Its assets are approximated to be US$2.6 trillion. Nonetheless, as the FDIC member, the bank’s corporate headquarters are based in New York although its commercial banking side is in Chicago.
Chase Bank loan service; loan service has two sub-topic, commercial lending, consumer credit card
In connection to the commercial lending services offered in daily basis, the bank also offers a wide variety of credit cards to its esteemed customers including cash-back, reward cards, and student cards. In case of fraudulent charges, many of them comprises of Zero Liability Protection. Nonetheless, Chase Bank has constantly high signup bonuses as well as reward rates. There are no-annual-fee options, great points program, or standup signup bonuses for any traveler in Ultimate Rewards (Plunkett 28). Below are the recent NerdWallet’s picks amongst the credit cards for a reasonable value and usability;
The Chase Bank Sapphire Preferred
This consumer credit card is amongst the most preferred travel credit cards which are readily available anywhere hence boasting a huge Ultimate Reward signup bonuses (Andrew & Brendan 43). With this credit card, when a consumer spends $4,000 on purchasing it and in the first three months from account opening, he or she earns 50,000 bonus points. Experts who offer marketing management assignment help at Edudorm essay writing service indicates that this is equivalent to $625 when a consumer redeems them via Chase Ultimate Reward. Whenever a consumer redeem for traveling via the bank’s booking tool, it means that his or her points are worth 25%. In addition to that, there is no foreign transaction charges levied on it hence an added advantage for world travelers.
As much as the reward rates are concerned, on using this credit card, the consumer gets 2 points per dollar travel and dining on addition to 1 point per dollar on any other purchases made. Cruises, rental cars, hotels, airfare, and train tickets are all considered to travel purchases. Consistent with all the Chase reward cards, not only that a person is able to earn unlimited points, the points given do not expire (Andrew & Brendan 43). In the first year this card has an introductory fee of $0 and then proceeds to $95. A consumer can transfer his or her points to 10 regular traveler programs at a rate of 1:1
The Chase Bank Freedom
This consumer credit card is considered to be an all-round winner which consists of great sign-up offer, $0 annual fee and other great rewards. With it, the consumer earns $150 bonus after spending $500 on purchasing it in the first 3 months of opening his or her account. Then the client will also be given 15% cash back on rotating bonus categories. Furthermore, he or she will receive up to $1500 spending per quarter as well as a 1% for everything else. Tutors who offer change management assignment help at Edudorm essay writing service points that the Chase Freedom is thus perceived as being a versatile, ideal go-to-card and a widely accepted one. Additionally, it is a next card, solid first card, backup card-anytime card (Lamb et al 284).
The Chase Bank Slate
This is the only consumer credit card which is known to have some rare combinations of a health introductory of $0 annual fee, 0% APR period as well as no balance transfer fee levied for the first 60 days. The introductory APR period that consists of 0% intro APR on all purchases as well as balance transfer, and in turn an ongoing APR 13.24%-23.24% variables is regarded as being an efficient consideration for the consumer with this card. It is equally, more convenient for the consumer who doesn’t desire to incur the upfront fees that is charged by majority of the balance transfer credit cards (Nick 2). For this card, the balance transfer fee ranges between 3-5%. This is to say that a consumer can efficiently take the advantage of its balance transfer features in case he or she will be trying to transfer from another Chase credit card.
Section B
Chase Bank SWOT analysis; strength, weakness, opportunity, and threats
Chase bank as the consumer as well as commercial banking subsidiary of the multinational banking company JP Morgan Chase & Co, the strengths, weakness, opportunity, and threats that it will be subjected to will be depended on the banking strategies and the agreements to be made by JP Morgan Chase & Co as discussed below;
Strengths
Chase bank as a subsidiary of the J.P. Morgan has remained to be one of the most successful banking businesses in the US. It has assets worth $1.2 trillion and about $106 billion shareholders equity. Since J.P. Morgan & Co is the oldest banking firm in the world, Chas bank as its subsidiary is much efficient in offering both banking and non-banking services to its customers. Since only in the United States J.P. Morgan Bank has 160,000 employees pool who enables it to make revenue of about $ 56.9 billion, this gives Chase Bank the capacity of becoming the leading service provider in the US. J.P. Morgan & Co is relatively efficient in operating on both the international and nation level (Plunkett 32). Authors who offer operations management assignment help at Edudorm essay writing service indicates that this then makes its subsidiary Chase Bank to have no market share restrictions to just one region or country. Conversely, as much it’s now operating in more than 50 countries, it is still able to meet a large percentage of the needs and objectives of its customers efficiently.
Moreover, the bank has superior reputation. This is because the bank has diverse knowledge of attracting and retaining personnel. Thus its attractiveness of their banking products as well as the non-banking services adds to its strength greatly. Other than having an outsourcing agreement of about $5bn with IBM, the bank will be enjoying economies of scale due to the J.P. Morgan Bank merger with the Bank One Corp. This will foster its self-sufficiency as well as the reduction of cost through the use of a do-it-yourself approach.
Weakness
The information technology (IT) of the J.P. Morgan Chase & Co is not that much sufficient as well as efficient in maintaining their system in their banking and non-banking business operations. In connection to that, the cancelation of its initial outsourcing agreement with IBM result to the general transfer of workers in the payroll of IBM, due to the loss of productivity of the company and employees’ anger. So as to secure this deal, the firm was forced to bring new consultants so as to aid in both implementing their original outsourcing agreement and servicing the worker. This made the firm to incur extra expenses.
Equally, there was a continuous decline in the bank’s productiveness because of the heavier workload that was given to the existing employees. On restructuring back into J.P. Morgan Chase & Co, majority of the workers ended up losing the jobs. Merging with Bank One also created at least 12000 payoffs.
Opportunities
The outsourcing strategy which the firm is to undertake from time to time will end up making the bank to be relatively more competent or have a competitive advantage through cost reduction and quality improvement. Its agreement with IBM and other large leading banking institutions will give it the capacity of creating significant value for its customers, employees, and shareholders. Additionally, the merging of J.P. Morgan Chase & Co with Bank One will result to the accomplishment of its large retail banking and non-banking presence. This will be advantageous to Chase Bank in the sense that it will boost the capacity of managing its business infrastructure. Furthermore, the bringing of the information technology (IT) backward in-house from IMB bank will be beneficial in assisting fixing the slummy economics of J.P. Morgan Chase & Co.
Threats
The banking sector is not as much stable as it can be taught to be. Currently the bank faces stiff competition because it operates in multiple countries both internationally and regionally. Since there agreement strategy will mean that IBM will be supplying its entire banking services to numerous companies of the same size as the J.P. Morgan Chase & Co, this will result into increased competitiveness.
The need of ensuring that workers are burdened with extra workloads with a corresponding salary reduction as well as the re-application processes for their work will ultimately cause their employees to be de-motivated hence retrograde productivity. Similarly, the success which is perceived to come from merger strategy with Bank One is not guaranteed. Writers who offer marketing assignment help at Edudorm essay writing service notes that in connection to that, the possibility of new banking firms entering into the market will of course effect competition. This to say that the will be an increased level of competition unlike that witnessed by the bank’s present rival. Another threat is that there are chances that the banks current customers might leave the firm. This is because of less expensive products offered as well as the changes in prices of substitute products which affect the demand of their products.
Work cited
Plunkett, Jack W. (2008). Plunkett’s Banking, Mortgages & Credit Industry Almanac 2009: The only complete guide to the business of Banking, Lending, Mortgages and Credit Cards. Plunkett Research Ltd.
Andrew W. B & Brendan M. C, (2014). Personal Finance Under One Hour. Under One Hour, LLC Press
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2016). MKTG9. Mason, OH: South-Western, Cengage Learning.
Nick C, (2015). Secrets From An Ex-Banker: How To Crush Credit Card Debt. Forbes Media Press
http://callisto.ggsrv.com/imgsrv/FastFetch/UBER1/788618_GDFS30560FSA
