JPMorgan Chase to Double Branches in Low-Income Neighborhoods

JPMorgan Chase announced plans Thursday to significantly expand its national “Community Center” program, with the goal of doubling the number of these specialized branches in low-income neighborhoods. The expansion includes hiring an additional 150 employees, known as community managers, and enhancing programming at these locations.

The Community Center program focuses on establishing Chase branches in low- and moderate-income communities, particularly those with a higher prevalence of underbanked or unbanked residents. The first Community Center opened in Harlem in 2019 as an experimental initiative, and its success has led to 19 locations currently operating nationwide. Diedra Porché, head of Chase's community and business development division, stated, “We are doubling down on our efforts to expand access.”

These branches function as traditional Chase branches but also feature open areas where financial educators and local nonprofit organizations can conduct workshops for neighborhood residents. These programs and workshops are offered free of charge, and attendees are not required to be Chase customers or express interest in the bank's products. The community managers, hired locally, are directed not to engage in product sales.

The workshops cover various aspects of financial education, from personal budgeting to resources for small business owners. Since the program's inception, Chase estimates it has hosted approximately 14,000 workshops, reaching over 1 million attendees. The bank has set a target to increase participation to 5 million attendees.

While banks are legally obligated to serve low-income communities under the Community Reinvestment Act, the methods of service provision vary. JPMorgan Chase CEO Jamie Dimon has previously expressed the belief that opening branches, creating jobs, and providing financing in underserved areas can have a greater impact than charitable giving alone.

Porché added, “We try to meet people where they are, and then give them the tools and resources they might need to take their next step successfully.”

The initiative also presents a business opportunity for the bank. Reports from Chase indicate that these community centers lead to higher rates of new account openings, often surpassing those of other branches in the vicinity, despite the absence of sales-focused staff within the programming itself.