NEW YORK–A year after launch, JPMorgan Chase is scrapping a digital banking app it was piloting in an attempt to attract younger consumers.
The nation’s largest bank said it has begun informing users it plans to shut down its “Finn” app, no-fee banking brand designed to meet the financial needs of younger consumers. The bank said it will transfer their funds to new Chase checking and savings accounts.
“It is a quick about-face for a product JPMorgan hoped would help it lure new customers to its online and mobile banking options, a hot spot of competition among the nation’s banks and financial-technology startups,” the Wall Street Journal said in its analysis. “With branches on the decline nationwide, banks are trying to strike a balance between the mobile and online offerings younger users want and having tellers and other specialists on hand in bricks-and-mortar locations that help with more complex matters.”
‘A Bit of a Hybrid’
The Journal noted Finn was a bit of a hybrid, offering customers a digital app loaded with features, as well as some branch access. But people familiar with the matter told the Wall Street Journal the bank ultimately determined that Chase was best positioned to provide that combination of services to its customers.
Morgan leads other U.S. banks with more than 50.7 million active digital users but “lately has been betting more than rivals on a larger physical presence,” the Journal added.
As CUToday.info has reported, JPMorgan Chase announced in 2018 plans to open 400 new branches over a five-year period as it pushes into new markets that include Washington, Pittsburgh and Nashville. It has also moved to close some branches.
One Perk Remains
According to the Journal, Finn users will have to download Chase’s mobile app and wait to receive a new debit card, but their account numbers and direct-deposit details won’t change. Users won’t have to pay the roughly $5 monthly service fee that JPMorgan charges for its most basic accounts, and one perk will remain: free access to a network of partner ATMs for those outside of Chase’s branch network.