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J.P. Morgan Chase Consumer Banking CEO Ryan McInerney and Chase Wealth Management CEO Barry Sommers on consumer confidence and the firm’s expansion ...
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So we are gearing up cards there's an interview with JPMorgan chairman CEO Jamie Dimon and now you're going behind business to get a look inside we're bank executives are seeing investors parking their cash what customers are actually spending their money on -- a lot of turns out.
Are Americans feeling great about spending now joining me are -- She's wealth management Ryan Mack and -- CEO consumer banking great to have you both -- haven't caught on the bus tour.
We're having a great time yeah that's been great we've been traveling all around Texas -- clients -- with employees been great.
Eight.
We're asking you know I was -- at a lot of the -- because look at internally up in order to see what people are doing.
And -- should I help people are spending.
I mean looking at just be out data for the week that just ended and it's a year over year things he can't say you know it's it's.
Sees it all.
Talking about around travel entertainment up 11% lodging 11% auto rental 17% airlines 10% this is compared to this week last year and it's not a -- Clinton was president stay weak for something like that.
It's been building like that are people feeling better.
What we do we get great insight to the consumer we have fifty million customers they spend on their debit cards or credit cards and the first six weeks of the year been great.
Spending is up we're seeing across the board the fine furniture from their houses -- -- -- -- -- out to dinner the traveling more as you said so things look good early in the year.
That's amazing -- what about what about your clients what about the clients that are in the higher net worth -- -- that's you focus on right.
And we focus on our affluent clients -- branches and -- very similar to Ryan said it just feels really good out there spending up.
In the fourth quarter and continued growth in the first quarter and investment flows continue to be strong so we know when you get out of fielding you speak to people just feels really good -- How in the world is that possible I mean Washington is falling -- at the scene -- You get the GDP data was a contraction at the end of last year and now they've revised it -- -- slightly positive but how did our our people tuning it out is -- I don't get it.
-- -- -- -- When when you travel around the country you just you get a sense of confidence it and and consumers are confident they're spending their best to more very said.
If you really do need to get out and meet the people would be yes -- -- -- individuals and if you just read the newspapers or watch TV get a different view of what's really going on.
And DM immediate halt again I knew if I L is -- -- us we're the ones that are to blame let me ask you about investor day just went -- you talked about really.
-- -- -- I ask what is a new vision for the bank not for -- because you've been planning it but you're talking about cutting back the workforce.
171000.
Across the board 4000 coming from branches at the same time.
You're opening a hundred new branches every year so how does that -- work out.
Want to have things going on this the first is we are continuing to open branches.
Now we're we're open -- a hundred branches a year in every time we -- a break it's great we employ people in the community to work in the branch -- put people community help open the British contractors electricians gardeners.
We're also change in the business and so it is true that next year we'll fewer people working -- business then this year in the next -- even fewer there's two big things going on there.
One is the economy's getting better.
Economy's getting better house prices going up and foreclosures are coming down -- so we've had thousands and thousands of people having to deal with foreclosures and defaults.
And as those things get better -- -- -- people to do that there the second thing that's going on is consumer to change in the -- -- bank with us they're taken advantage of a lot of tools we've given them.
To make deposits on their mobile phones are ATMs.
And so -- -- fewer people in our branches.
To telephone with more transactional needs what happens is the mix of people in our registry and changes for more transactional -- Type focus to more advisory and helping people with more complexities.
And what -- -- revenue like from that because the biggest criticism that we always hear from analysts is bad as you can't charge as much for debit card fees for overdraft fees -- the real source of revenue -- back on you have to figure out another way to make the business profitable how that's what you're talking map equation that.
The business remains very profitable.
And it is true we've lost some source of fees that we -- -- -- tremendous success deepening relationships with our customers -- and as a result deposit balances are growing much faster than the market in every market that we're in.
An investment balances are significant -- -- That's credit your deficit the rich people -- -- right -- -- but that's that's my job to make sure that we have the right platform for customers and change private clients perfect example of that.
That we have over two million affluent clients -- chase in these clients have been them.
Clients for -- from twenty years.
They -- the branches he visited branches about three times a quarter.
Although that you see over twenty years -- investor kind of late to that business I mean it was 2007 when you got into wealth management right in chase.
It would always been well managed business in 2007 we sort of our -- -- private client and our clients pulled was loud and clear they were looking for a different level of service they were looking for -- -- it's very certain products so we responded by delivering change private client.
And we feel really good that we could deliver this in -- -- You guys -- great sports because your boss is right behind you and he's looking over here the whole entire time we're gonna bring him out right fist against about -- -- that's a lot of pressure to sit there do that -- -- watching --
