Previously, we had done the absolute SWOT Analysis of Citi – The Third-Largest Financial Service and Investment Banking Corporation. Today we are going to learn about the SWOT analysis of Chase – one of the largest subsidiary banking companies of JP Morgan Chase, located in New York City, USA.
Chase, Chase Bank or JPMC (JP Morgan Chase) Bank is one of the largest U.S. consumer and commercial banks providing banking services including saving accounts, checking accounts, mortgages, auto loans, planning, business banking and many more. It is one of the Big Four Banks of the USA.
Now, Chase has stepped up into the digital environment. To accelerate their digital banking services, they have been acquiring new marketing strategies to adapt to changing environmental aspects. They have included digital marketing in their marketing techniques. If you are interested in learning digital marketing for a fresh kick start to your career – check out our free masterclass on digital marketing by the CEO and Founder of IIDE, Karan Shah.
Before we go into the SWOT Analysis of Chase, let us know about Chase as a company.
It all started through the mergers between Chase National Bank and the Manhattan Company in 1955 to form the bank known as Chase Manhattan. Later on, the bank merged with J.P. Morgan & Co. and became a subsidiary bank of JP Morgan Chase holding company in 2000. Originally, the bank was founded in the year 1799 with its headquarters in New York City, USA. It is often viewed as a signature banking institute. Half of US households are served by Chase.
All over more than 5100 branches and 17,000 ATMs, over USD 2.6 trillion assets of clients are managed by Chase. It employs more than 250,000 employees throughout its operation. To add up, it provides financial services, loan services, saving and credit services under various categories of products.
|Founder||Aaron Burr & John Thompson|
|Origin||New York, US|
|No. of Employees||250,000+|
|Market Cap||$395.94 Billion (2022)|
|Annual Revenue||$51.3 Billion (2021)|
|Net Income/ Profit||$34.642 Billion (2021)|
Products by Chase
Chase serves its consumers through a broad range of products and services. Chase has been the United State’s most admired company. US households mostly prefer Chase for banking services. Following are the products and services of Chase.
- Credit Cards
- Personal Banking
- Investment and Retirement Planning
- Auto Loans
- Home Lending
- Commercial Banking
- Business Banking
- Checking and Saving
Competitors of Chase
Chase, being a consumer banking company, has its competitors in the industry. Competitors are a part of the external business environment. Below is the list of competitors of Chase.
- Bank of America
- Discover Bank
- Wells Fargo
- Alliant Credit Union
- Ally Bank
That’s it, now that we have brief information about Chase. Let’s know more about the SWOT Analysis of Chase. Now that we know about the company, let us dive into the SWOT Analysis of Chase.
SWOT Analysis of Chase
SWOT analysis is the study of the Strengths, Weaknesses, Opportunities, and Threats of a company. This helps the company to know its position in the market and what needs to be improved and what areas it can excel in. It also helps the company to strategize its framework related to business and factors affecting its growth.
To better understand the SWOT analysis of Chase, refer to the infographic below:
So let us first start by looking at the strengths of Chase from the SWOT analysis of Chase.
Strengths of Chase
Strengths are the activities that a company possesses. This helps in contributing to the company’s success. The strengths of Chase can be analyzed as follows:
- Wide Existence: Chase has more than 5,100 branches and 17,000 ATMs around the United States. It also operates its services in over 100 countries with more than 250,000 employees globally.
- Strong Brand: With a history of 200 years, Chase has been established as the most admired bank and the most employee-friendly bank during its service year.
- Online Services: Chase has adapted to the digital period. It has started providing various services through online and mobile banking.
- Broad Range of Portfolio: Having a broad range of portfolios is one of the strengths of Chase. The bank provides various financial and investment services and it is also the bank listed under the Fortune 500 list.
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- Strong Parent Company: One of the biggest strengths of the bank is that it has a strong parent company, JPMorgan Chase, at its back to support it in both advisory and financial manner.
- Splendid Services: With an experience of over 2 decades it has been providing its customers with some of the best services in the market and this helps them strengthen their bond with their customers.
Weaknesses of Chase
Weaknesses stop an organization from performing to its utmost potential. One should analyze the weakness and work upon them to help the firm excel in all terms.
- Low Investment in Necessary Aspects: With its large presence in the globe, Chase is found to have a lesser investment in necessary infrastructure. It has rather invested in the fossil fuel industry.
- US Based Network: Although Chase operates more than 4700 branches, its operations are limited to US households customers.
- Transgression Acts: This has proved to be a major weakness of Chase. There are many controversies about transgression acts such as misled investors, collecting illegal flood insurance commissions, violating the Federal Trade Commission Act etc.
- Lack of Proper Management: Chase has been lagging in its proper management of human capital. It has been paying fees, settlement and litigation expenses for illegal actions taken by business executives.
- High Attrition Rate: Chase has a high attrition rate compared to other organizations. The bank has to spend more compared to its competitors on the training and development of its employees.
- Technical Failure: In Feb 2018, Chase experienced a technical issue. Its online banking system had a security flaw that allowed certain users to gain access to other users’ account information. Customers who were affected by the problem voiced their anger on social media. Technical difficulties can occur in any organization but, when they occur in such a large company customer trust may be affected.
Opportunities for Chase
Opportunities are external factors that are in favour of the company and the firm can use it to its advantage to grow.
- Technology Advancements: Bloom in technology has been the greatest boon to mankind and the organisation as a whole. With technology advancement and adaptation to it, Chase can provide a wide range of services to every nook and corner of the world.
- Globalisation: Globalisation has proved to be the best opportunity for Chase as they can serve their worldwide customers easily with their products and services.
- Industrial Sector: Every country is transitioning into an industrialised sector. Hence, there is great potential for future customers that it can serve.
- Population: In recent years, the number of people has been expanding around the world. As the number of people increases demand also increases. This allows Chase to gain potential future customers.
- Continue Acquisitions: The bank is known for its number of mergers and acquisitions including mergers with PNC financial services, acquisitions of Bank of New York Co. etc. Chase is strong in this area and it should continue to do so.
Threats to Chase
External factors that might affect the bank are known as threats. These issues should be taken into consideration as soon as possible to prevent causing damage to the firm. The threats to Chase are as follows:
- Existence of Competitors: The existence of big competitors such as Wells Fargo, Bank of America etc have been threats to Chase. Customers may get attracted to the services of other competitors.
- Pandemic Situation: Pandemic situation as Covid-19, financial losses suffered by organisations and individuals are threats to banks. It slows down the saving, investing and repayment of loans.
- Security Threats: If the bank faces any security difficulties at any moment, it can be a great threat to the bank. After such situations, regaining client confidence and ensuring them would be challenging to the bank.
- Changing Policies: the government can change its policies anytime which can affect the working process of the company. Thus it needs to be aware of such changes which can happen in the future.
- Financial Crisis: The company can face a financial crisis anytime in the future without its knowledge so to avoid trouble in such times it needs to have a proper financial study of its company and keep separate provisions for such times.
This ends our in-depth SWOT analysis of Chase. Let us conclude our learning below.
Chase is growing its digital banking services for US-based households and global customers as well. We can observe that Chase has many competitive advantages over other banks. But it still has many aspects to be improved. The digital era is also providing opportunities to gain to Chase.
In this digital period, we have easy access to online mediums like phones, apps etc. Thus, increasing online services through digital marketing can be a great advantage in today’s generation.
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We hope this blog on the SWOT analysis of Chase has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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