JPMorgan Chase’s Finn Hasn’t Gained Traction…Yet

Digital bank Finn has not given JPMorgan Chase the results it had hoped for, at least not yet, according to CB Insights.

“To date, the app has had little traction. However, JPM hopes that in the future Finn will become its ‘entry-level’ customer recruiting tool,” according to the CB Insights report, which was released last week.

JPMorgan Chase has not revealed any numbers on its Finn customers yet. But JPMorgan Chase has consistently been the leader among its peers when it comes to digital and mobile users. In the most recent quarterly report, the bank revealed it had 47.9 million digital users (online and mobile) as of June 30. During 2Q18, the bank reported 31.6 million mobile users, an impressive 11.2% YOY increase. Bank of America, which comes second to JPMorgan Chase, is still far away at 25.3 million mobile users.

The hope for launching Finn was for the bank to be able to reach an entirely different consumer segment, one that’s younger and more tech-savvy.

“There’s a set of consumers who are not using Chase today, and it’s not because they have an adversary to Chase, but because we weren’t offering the product that speaks to them today,” Melissa Feldsher, managing director, head of Finn, told Bank Innovation in a previous interview. “We found there’s a growing segment of the population who is looking for a mobile end-to-end experience, which is not something we have today.”

The past few months have seen a trend, not just with JPMorgan Chase, but overall where larger banks in the U.S. are taking a cue from their European counterparts and spinning off standalone digital-only banks as a way of expanding their customer base. Earlier this year, Spanish bank BBVA launched digital bank Azlo in the U.S. The bank’s U.S. brand BBVA Compass also functions like a digital-bank, supplemented with some branches in certain regions. BBVA did not reveal numbers for BBVA Compass or Azlo, but the bank has over 15 million mobile users across the entire brand. Just last month, Citizens Financial Group launched a mobile-first bank of its own called Citizens Access.

As for Finn, JPMorgan Chase first revealed plans of this bank last year in October. As of June this year, Finn was rolled out nationwide.

Finn offers debit cards, no-fee checking & savings accounts, PFM capabilities as well as bank-backed P2P service Zelle. For their debit cards, Finn customers can use Chase ATMs and partner ATMs through the Chase franchise. The Finn app is currently available on iOS and has no physical branches.

“The app’s most interesting feature might be its rule-based, reactionary savings mechanisms, which aim to teach customers how to save,” the CB Insights study said.

Some of the rule-based functions include autosave rules consumer can set, based on spending, and income. Most recently, BBVA Compass launched a similar tool, and of course- Bank of America with Erica and Goldman Sach‘s consumer lender Marcus with Clarity Money provides a similar service to its customers. 

See the full CB Insight study here.

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