How JP Morgan Chase Grew From a Small Bank to a $2.6 Trillion Enterprise

JPMorgan Chase grew from a small Manhattan bank to become the largest bank in the United States through smart investments, deep knowledge, and commitment to technology.

There are specific factors we take in when deciding whether a bank is right for us.

A bank's culture, history, and track record are all key factors to consider.

So are its locations and customer service.

JPMorgan Chase is one of the oldest banks in the country.

It has grown out of hundreds of smaller firms to become the titan of American banking.

It dominates in investments, personal and small business banking, mortgages, and auto loans.

It issues popular credit cards like Chase Freedom, Chase Sapphire Preferred, and the United MileagePlus Explorer Card.

With over 5,000 branches in 23 states, a Chase bank is likely in your own neighborhood.

Since its colonial beginnings, JPMorgan Chase been quick to adopt new technology like electricity and the internet.

It continues to innovate in mobile banking.

Internally, the company promotes diversity and gender equality, aiming to attract the best talent regardless of background.

Throughout its history, the government has trusted JPMorgan Chase when times get tough.

It has helped calm financial panics and stabilized the economy.

Total Assets of JPMorgan Chase

During the 2008 financial crisis, JPMorgan Chase was relatively unscathed.

It remained profitable throughout the downturn.

When the Federal Government needed someone to bail out the investment bank Bear Stearns, they turned to JPMorgan Chase.

While its size might be intimidating, JPMorgan Chase focuses on customer service at its retail branches.

Local bank managers build personal relationships with customers and offer guidance to small businesses as they grow.

Our intent is to give you the most valuable, detailed content online along with the tools you need to build a better financial life.

By giving you our perspective on JPMorgan Chase's products, services and history, we want you to make decisions swiftly and confidently.

If the government can trust JPMorgan Chase, so can you.

About the Company

Today, JPMorgan Chase is one of the world's largest banks.

It is the biggest in the United States and the sixth-largest in the world.

JPMorgan Chase has assets of over $2.6 trillion.

It operates in over 60 countries.

It offers a wealth of financial services, including investment banking, small business and commercial banking, consumer banking, and asset management.

Chase has 5,227 bank branches in the United States and 33 international branches.

JPMorgan Chase has grown enormously since its colonial beginnings

JPMorgan Chase is built upon 1,000 predecessor institutions that have merged or been acquired over the past 200 years.

These include Chase Manhattan Bank, J.P. Morgan & Co., Chemical Bank, Bank One, and Bear Stearns.

The bank's oldest predecessor institution is The Manhattan Company. It was founded in 1799 by Aaron Burr and began as a water company.

New York City lacked a reliable water source, so the state chartered The Manhattan Company to supply clean water.

The charter also gave the company the right to practice banking, which required government approval.

Burr's rival Alexander Hamilton ran the Bank of New York. On July 11, 1804, Burr killed Hamilton in an infamous duel in Weehawken, New Jersey, across the river from New York City.

Burr went into hiding, but his bank endured, even after it stopped supplying water in 1842.

It later merged with Chase National Bank, becoming Chase Manhattan.

John Pierpont Morgan founded J.P. Morgan & Co. in 1871. He was a hugely successful Wall Street businessman who participated in some of the largest transactions of his time.

He helped create United States Steel, the world's first billion-dollar corporation.

Morgan even bailed out the U.S. Treasury—twice.

He worked to end the panics of 1893 and 1907 and restore confidence in the economy.

The bank's current form dates back to 2000, when J.P. Morgan & Co. merged with Chase Manhattan.

It has continued to grow, merging with Bank One and acquiring Bear Sterns.

Formerly headquartered at 23 Wall Street in New York City, the company is now based at 270 Park Avenue.

Innovation and diversification have fueled JPMorgan Chase's growth

American banks have faced countless shocks over the last two centuries.

JPMorgan Chase firms have weathered recessions, bailouts, and regulations to emerge as the country's biggest bank.

How?

It has roots in many industries. Earlier firms to JPMorgan Chase were active in chemical manufacturing, fire insurance, and railroads.

They helped fund construction of the Brooklyn Bridge and Panama Canal.

This broad exposure meant that the bank could spread out risk by investing in a diverse range of businesses.

It's given the bank in-depth knowledge and expertise.

JPMorgan Chase has always embraced new technology. J.P. Morgan financed Thomas Edison's research into electric light bulbs and helped his company incorporate.

Edison's company later became General Electric.

In 1927, the bank helped finance Charles Lindberg's flight from New York to Paris, the first nonstop solo transatlantic flight.

Chase Manhattan was an early player in credit cards. In 1958, it introduced a retail charge card and became a leading provider of bank credit cards in the New York area.

Starting in 1959, it began building a major art collection. Today, the JPMorgan Chase Art Collection is one of the largest corporate art troves in the world.

Its 30,000 objects come from every country in which the bank does business.

They include works by Chuck Close, Andy Warhol, Kehinde Wiley, and Betty Parsons.

It opened the first American ATM. In 1969, Chemical Bank, one of JPMorgan Chase's predecessor firms, installed the first automated teller machine (ATM) in the US, in Rockville Center, New York.

The ATM changed banking forever.

To withdraw cash, customers no longer had to visit the bank during business hours. Banking was now a 24/7 operation.

It built an international presence in the 1970s. Under David Rockefeller, its CEO for over a decade, Chase Manhattan did business abroad.

It was the first American bank to operate in Egypt, China, and the former Soviet Union (now Russia).

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Banking moved inside homes. In a nod to online banking, Bank One, which merged with JPMorgan Chase in 2004, developed ‘home banking' in the early 80s.

Customers could view their bank balances through the television, using phone lines.

JPMorgan Chase was there when online banking began. In 1983, Chemical Bank launched the first major online banking program, called Pronto. Chase Manhattan followed soon after.

The bank took its current form in the 2000s. The merger of J.P. Morgan & Co. with Chase Manhattan Bank in 2000 began a decade of essential deals for the company.

In 2004, it expanded its retail banking footprint to 17 states when it merged with Bank One.

Jamie Dimon, Bank One's former CEO, is now chairman and chief executive of JPMorgan Chase.

In the 2010s, the company has focused on giving back. It invests in cities, communities, and provides job training.

It has helped provide work for veterans as part of the 100,000 Jobs Mission. Since 2011, JPMorgan Chase has hired 11,000 veterans.

After Detroit declared bankruptcy, JPMorgan Chase pledged $100 million to support its revitalization.

In 2015, it launched its own think tank: the JPMorgan Chase Institute.

It mines the company's vast data and deep expertise to provide probing insights about the global economy.

JPMorgan Chase played a critical role during the 2008 financial crisis

JPMorgan Chase was a rock for the economy during the 2008 subprime mortgage crisis.

In the midst of a meltdown, the bank remained solvent.

It lent money to homeowners, businesses, and the State of California.

A rare voice of caution. During the subprime mortgage craze, JPMorgan Chase CEO Jamie Dimon prepared the company for a potential fallout.

In early 2007, over a year before the market crashed, Dimon warned shareholders to expect a downturn as more people defaulted on their subprime loans.

He set aside a stash of cash to cushion the blow.

At the start of the financial crisis, the government turned to JPMorgan Chase. The investment bank Bear Stearns was the first to fall as a result of the subprime mortgage crisis when investors pulled out their money.

In early 2008, the Federal Reserve and Treasury Department implored Dimon to buy out Bear Stearns.

JPMorgan Chase bought Bear Stearns for $270 million. It paid only $2 a share.

It also bought Washington Mutual for a bargain price after the government seized the savings-and-loan bank in September 2008.

Despite its relative stability, JPMorgan Chase received a $25 billion dollar TARP investment.

Dimon initially resisted the cash, but accepted under pressure from the Treasury.

JPMorgan Chase repaid taxpayers in June 2009. In a letter to employees, Dimon explained why the bank accepted the funding.

We believed it was in the best interests of our financial system and our country, even though our company did not need the capital. We believe the program helped the country overall and that accepting the funds was, therefore, the right thing for us to do.

Still, JPMorgan has made mistakes. During the real estate boom, the bank actively sought business from outside brokers, who originated 30% of all of its home loans at the time.

These broker-originated loans created in turn Credit losses two to three times worse than that of JPMorgan's directly originated business.

Dimon has since shuttered the broker business.

Since then, JPMorgan Chase has delivered record results. Earnings, stocks, and market share are consistently up. Customer satisfaction is high.

How the Company Works

As the country's largest bank, JPMorgan Chase has a wealth of financial offerings.

Whether it's an auto loan or a hip credit card, it offers something for all consumers.

That range of products and services is how it became the $2.6 trillion enterprise it is today.

It serves half of the American households. Chase, the retail banking arm of JPMorgan Chase, works with over 60 million US households—half of the country.

High earners rely on the firm for private banking, consistently ranked the best in the country.

Chase also serves four million small businesses.

Business customers and deposits keep growing.

Customers stay connected online. Its website, chase.com, is the most-visited banking portal in the United States.

It has over 40 million active digital customers and 29 million mobile customers.

A tradition of excellence. JPMorgan Chase has grown enormously in the past two centuries.

With foresight-rich founders and intelligent bankers, it has become a true success story.

It's now a reliable financial partner for millions of individuals and businesses.

Chase personal banking services extend beyond its retail branches

JPMorgan Chase was there at the beginning of online banking.

It remains committed to technology, with the goal of making banking as easy, safe, and efficient as possible.

It leads the nation in deposits.

In the fiscal year that ended in June 2017, consumers and businesses added $96 billion to their bank accounts.

The Chase Mobile App streamlines transactions. True to its tradition of innovation, Chase keeps investing in new technology.

The Chase Mobile App lets users view account balances, make payments and deposits, transfer funds, pay bills, and send money with Chase QuickPay.

Chase has over 29 million active mobile customers.

The number keeps growing thanks to new digital improvements.

Top Activities Performed on Bank's Mobile App

Use your phone to make payments. Chase has embraced digital transactions with the Chase Pay app.

The Chase Pay app lets consumers use their phone—instead of cash or credit card—to pay for items at stores.

At participating merchants, all you have to do is scan a code in the app.

It has created a mobile bank called Finn. In 2017, it introduced Finn by Chase, an entirely mobile bank.

Everything you can do at a brick-and-mortar bank, you can do with the Finn mobile app.

You can open a checking and savings account, deposit checks, and send money.

Finn also tracks and categorizes your spending and allows you to automate savings.

ATMs are close by. Ever since it became the first American bank to introduce the ATM, JPMorgan Chase has made sure there's a cash machine near you.

Chase has over 16,000 ATMs, where you can make deposits and use your debit card to withdraw cash for free.

Chase has a credit card to suit any consumer

A pioneer of credit cards, JPMorgan Chase, has become the top credit card issuer in the country.

It offers 24 personal and business cards.

Chase credit cards are particularly noted for their popular travel rewards programs.

Chase Sapphire cards are great for travel. They get consistently high ratings for flexible rewards redemption on flights, hotels, car rentals, and cruises.

Chase Sapphire Preferred awards double points for spending on dining and travel.

There's no fee the first year and a $95 fee thereafter.

New cardmembers get 50,000 points, the equivalent of $625, when they spend $4,000 in the first three months.

Sapphire Preferred cardholders also get exclusive access to concerts and events.

The pricier Chase Sapphire Reserve comes with a $300 annual travel credit.

It charges a $450 annual fee and awards 3X points on dining and travel spending.

Chase Freedom cards help you earn cash back. The no-fee Freedom and Freedom Unlimited cards come with a $150 sign-up bonus and 0% introductory APR.

Chase Freedom offers 1% cash back on all purchases.

It gives you 5% cash back on rotating spending categories, like supermarkets, up to $1,500.

Freedom Unlimited gives a flat 1.5% cash back on all purchases.

Balance transfer cards help you save on interest. With free intro balance transfer offers, these cards allow you to consolidate your high-interest rate balances onto one low rate credit card.

The Chase Slate credit card offers a free balance transfer in the first 60 days.

It also has a 0% intro APR for the first 15 months and no annual fee.

The Chase Freedom cards and Ink Business Cash credit card offer free balance transfers for the first year.

Branded Chase cards offer deals with your favorite vendor or travel company. Chase partners with airlines, hotels, and retailers to give you special rewards.

The Southwest Rapid Rewards Plus credit card earns miles quickly on the popular domestic airline and has a low annual fee.

With the United MileagePlus Explorer Card, you get lounge access, priority boarding, and free checked bags—plus a generous sign-up bonus.

To earn free hotel stays, there's the Marriott Rewards Premier credit card, Ritz-Carlton Rewards credit card, Hyatt credit card, and IHG Rewards Club Select credit card.

All offer lucrative offers for new cardmembers.

The Amazon Rewards Visa Signature card earns 3% back on Amazon purchases, racking up points to use on its website.

Chase uses technology to simplify buying a house or car

JPMorgan Chase is one of the country's top mortgage and auto lenders.

Millions of consumers trust Chase when making big purchases. Over 3.7 million people use Chase for auto financing and more than six million use the bank for their mortgage.

Although Chase does not offer personal loans, it will help you get an auto loan or mortgage, refinance your mortgage, and tap into your home's equity.

True to its innovative past, it continues to embrace technology and is open to new ideas.

JPMorgan Chase collaborates with start-up financial technology companies to streamline the customer experience for home and car purchases.

Chase Auto Direct helps you find and finance a new car. Customers can do most of the work entirely online through the TrueCar platform: select a car, find a dealer, and apply for an auto loan.

Chase then sends the approved loan application to the dealer, where the customer completes the purchase.

Its digital mortgage service speeds up the home loan process. Chase collaborated with the mortgage technology company Roostify to build an online and mobile platform that tracks loans from start to finish.

The Chase mortgage platform provides digital updates, eSign capabilities, and messaging with loan officers.

Chase helps small businesses every step of the way

For small businesses, Chase provides the kind of personal support you'd expect from a local bank—with all the advantages of a big one.

Top 10 Marketing Tools Used by Small Businesses (2017)

It has four million small business clients, who consistently give Chase high customer satisfaction ratings.

Chase offers everything small businesses need to grow. It provides business checking accounts and credit cards, business lending, real estate financing, payment services, and payroll solutions.

It gives small business owners up-to-date tools. With tech lending company OnDeck, it developed Chase Business Quick Capital, an online lending platform that provides same-day funding.

Through its acquisition of WePay, JPMorgan Chase provides integrated payment solutions for small business owners.

WePay helps companies accept payments seamlessly through online platforms.

JPMorgan Chase Brings Years of Experience in Investing

One of the country's preeminent investors, since the beginning

Its broad expertise helps customers build diversified portfolios and meet financial goals.

Today, J.P. Morgan manages $1.7 trillion in assets. It works with individual investors at Chase retail branches, wealthy families at its Private Bank, and institutional investors through its Asset Management businesses.

Long trusted by the U.S. government, J.P. Morgan also has relationships with half of the world's wealthiest families and 60% of the world's largest pension funds, sovereign wealth funds, and central banks.

J.P. Morgan offers personalized financial planning. Its advisors will help you create a retirement strategy, plan for a child's college education, and build a diversified investment portfolio.

Financial advisors can manage your account, assessing your risk tolerance to balance equity holdings (stocks) and fixed income (bonds).

JPMorgan Chase built a $2.6 trillion business through expertise and innovation

Over two centuries, JPMorgan Chase has been a trusted financial partner for individuals and the United States government.

Its history proves that there are real advantages to being a big bank: it has in-depth knowledge and experience in many industries.

Through its extensive network of retail branches, JPMorgan Chase retains a high level of personal service despite being the country's largest bank.

Harnessing the power of technology, it always strives to make banking easy.

JPMorgan Chase offers whatever you need from a bank, either on your phone or at your neighborhood branch.

Ready to take advantage of JPMorgan Chase's centuries of experience?

You can open an account, get a credit card, or apply for a loan today.

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