When it comes to banking, it’s easy to fall into that trap where the sheer size of the institution is all that matters. In fact, bigger banks have far more on their plate and it takes a lot of careful management to ensure that customers don’t end up feeling like just another number in the system. For some banks, this seems harder to manage than others. Policy gaps and profit margins can wreak havoc with customer service, especially when the bank’s interest is the only one taken into consideration.
Is this the case with Chase Bank? How does it take care of its massive asset holdings and still provide world-class service? These questions and more are answered in this review of Chase Bank.
See how Chase compares to another American banking stalwart, Wells Fargo.
Chase Bank History
If the name seems familiar but you just can’t place it, it’s because you’re probably more familiar with the full name – JP Morgan and Chase.
Apart from the abolishment of slavery in New York in 1799, another milestone provided the state with a fair boost. This other event played a role in the state coffers, however, as the foundation of JPMorgan Chase was built when Aaron Burr founded The Bank of The Manhattan Co.
The Manhattan Co. was institutional in the formation of a charter that allowed it to use its surplus funds as they deem fit. The company was originally established to provide water to the lower parts of Manhattan. Furthermore, these waterworks consisted mainly of wooden structures to carry the water from one part of the city to the other. The Bank of Manhattan continued long after the waterworks, as the municipality took over that function.
Although the bank was a secondary interest, it soon excelled and became the main source of revenue for the company. Not only did it manage to establish itself in the local community, it soon became one of the leading banks in the entire United States.
The bank is linked to many of the banks dotted across the American landscape. Over the years, mergers and acquisitions allowed the bank to increase its footprint. Furthermore, the bank was also instrumental in the establishment of many technological advancements through funding and finance. Many of the modern infrastructure in the United States today was funded or financed by the bank as well.
Not Just Finance
Not all banking operations were entirely finance related, as many of the banks of those days started out in a variety of industries. One of those includes the Marine and Fire Insurance Co. which was Wisconsin’s answer to a banking system. In those days, banking was prohibited in that state.
In the mid to late 1800’s, the banking systems change quite a bit. Various forms of currencies were in circulation at the time and during the Civil War, the issuing of “greenbacks” became a significant part of the American economy. Furthermore, banks had the choice to avoid the state bank tax by converting to a federal bank. This allowed state banks to dwindle to a few hundred. This was until some creative banking allowed these banks to capture a fair market share again.
Chase National Bank was founded in 1877 by a Wall Street banker, John Thompson. The bank was known for its prowess in the corporate world and also enjoyed a good reputation. Along with its capture of corporate market share and that sterling reputation, the bank soon experienced bursts of growth.
It took just over 60 years for the bank to become the largest bank in the world. Stellar assets and that reputation soon caught the eye of would-be investors and in 1955 it merged with The Bank of The Manhattan Company. The bank was then known as The Chase Manhattan Bank.
The Welcoming of JP Morgan
JP Morgan was the other part of this bank. The founder, J. Pierpont Morgan was known for his influence in railway companies at the time. A legend in the world of bankers, Mr. Morgan was an influencer who worked hard to save businesses during times of hardship. In fact, he was responsible for the rescue of several businesses during 1907. He also formed part of a syndicate that bailed the City of New York out. He also rescued the New York Stock Exchange.
Towards the beginning of the 19th century, banks were able to offer real estate loans and other products previously not available. It was also during this period where banks found it necessary to increase their global footprint. The establishment of branches across the world became the order of the day.
The 1930’s was a time of anguish for the banking industry, as many banks had to cut back operations and some even closed doors permanently. The Great Depression also demanded that banks do things differently. In 1933 the Banking Act was passed and formed a stronger foundation for banks. It also allowed banks to have a clearer understanding of allowable transactions. Furthermore, banks were limited in terms of interest payable and other transactions that had the potential to put them at risk. This was also a clear indication of the difference between commercial banking and investment banking.
Modern Banking Practices
World War II was around the corner and the economy took another beating. It took many years for the economies across the world to recuperate from the war. In the United States, it led to a total overhaul of trade and industry, with the manufacturing sector a major contributor to the economy. Throughout the fifties, a keen focus on the establishment of manufacturing plants and factories took place. It was also during this period where business on a global scale became a daily occurrence.
By the 80’s, there were over 160 US branches or representative offices overseas. From the 50s to the 80s customers were also exposed to different ways of banking. This included cash machines, credit and debit cards.
The New Millenium
In the year 2000, JP Morgan & Co and The Chase Manhattan Co. finally merged. The firm was then called JPMorgan Chase & Co. Soon after, Bank One Corp. also joined the team and In 2008, The Bear Stearns Companies. It was also during 2008 that one of the biggest banking crisis took place. JPMorgan Chase & Co. did not come through it unscathed, as the bank received billions in bailout funds. The Bear Steans acquisition turned out to be a bad purchase. Coupled with a few poor internal decisions, the bank followed in the footsteps of many other banks in the US.
Chase Bank is once again causing headlines, as it faces the gallows with unfair treatment of customers from African and Hispanic descent. There is also the aftermath of the mortgage drama of 2008 that the bank still has to answer for. The final outcome for Chase Bank is yet to be decided.
Access to Chase Bank
Customers can take care of many of their transactions online. In fact, the need for branches has decreased quite a bit and are closed on a regular basis. Internet banking options are available for individual and business use.
With over 5,000 branches in operation, Chase Bank enjoys a fair amount of representation in the United States. The global reach of the bank extends to over 60 countries. Furthermore, the bank also provides additional services such as private banking and wealth management.
Chase Bank Personal Banking Product Offerings
Chase has a variety of credit card options available to clients. A full review explains exactly what clients can expect from this range.
A surprising review for a bank of this magnitude. Find out why with the Chase Current Account review.
Savings and CDs
Customers find themselves at a loss for options with this range, find out why with the Chase Savings review.
The bank offers car finance, but find out whether the range is good enough to warrant a perfect score. Read the full review here.
Home Loans (Mortgages)
Possibly one of the better ranges of mortgages are from Chase and we recently did a review.
Individual Retirement Account (IRA)
With this option, customers make deductible contributions. Furthermore, they expect their tax rate at retirement to be lower than it is now. Customers won’t pay any taxes on the deductible contributions or earnings. This is until the age of 59 ½.
This option is suitable for those who think their tax rate me be the same or even higher when they reach retirement age. Furthermore, this is when the funds are withdrawn as part of a qualified distribution.
This option is suitable for those who wish to keep their investment portfolio in check while financing short-term finance needs. Furthermore, this is perfect for those who don’t want to disturb their investments or miss out on earnings.
Fixed Annuities Offer
With this type of annuity, customers are guaranteed a fixed rate of return. Furthermore, it offers a guaranteed minimum interest rate. The other option is to receive a guaranteed income payment for a specific period of time.
Variable Annuities Offer
With this type of annuity, customers have the potential of growth in their portfolio. Furthermore, although the annuity’s value can increase, it can also decrease. Also, the investment portfolios can range for conservative to aggressive. Finally, this type of investment enjoys tax-free transfers between them and guaranteed income riders.
Fixed Immediate Annuities Offer
With this option, the contract holder will invest a lump sum. They will then receive a fixed monthly income. Furthermore, customers can choose a package that will pay them for life or for a specific period of time.
Chase Bank Business Banking Product Offerings
Business Checking Accounts
Chase Total Business Checking®
This account is suitable for new or growing business who still need to build up their transactions. With this account, business owners will be able to manage their cash flow easily and efficiently. Furthermore, customers have various options available to them to save on their banking fees.
- The account allows up to 200 transactions per month without attracting fees.
- Customers also have the option to reduce their fees and impact on the environment. Therefore, customers pay more on accounts that have paper statements.
- Furthermore, there is no monthly service fee on accounts that have a certain minimum balance.
- The account permits incoming and outgoing domestic wires.
- Finally, customers will have access to online service delivery and telephone banking.
Chase Performance Business CheckingSM
This account provides a suitable banking solution for mid-sized businesses. Furthermore, these businesses should have simple cash management needs.
- Customers can save on the monthly service fee on the account if they maintain the minimum required balance.
- The account allows up to 350 transactions each monthly statement cycle.
- Also, cash deposits up to a certain amount are without fees.
- Furthermore, customers have access to two domestic wire transfers per month without charge.
- Finally, customers also have access to the online servicing and a Premier Service Line telephone banking.
Chase Platinum Business CheckingSM
Big businesses who don’t have a tricky cash management needs, will find this account to tick all the right boxes. Furthermore, this account meets higher transaction needs.
- Customers who maintain the minimum required balance do not have to pay the monthly service fee.
- Furthermore, this account provides up to 500 transactions per month without a fee. Also, it includes unlimited electronic deposits and incoming wires.
- Customers can deposit up to a certain amount every month without an additional fee.
- Also, the account allows up to four outgoing wires per month at no charge.
- Finally, customers have access to online servicing. There is also preferred client access through Chase Platinum Business ServiceSM.
Chase Business SavingsSM
This account provides the ideal solution for those businesses who will have a lower savings balances.
- The account requires a low opening deposit to get it going.
- Furthermore, the monthly service fee is waived if the account is linked to a qualifying business checking account.
- Also, the FDIC insures deposits up to the prescribed limits.
- Finally, this account can link to a business checking accounts to fund overdraft protection.
Chase Business Select High Yield SavingsSM
With this account, businesses who have a higher savings balance will reap the rewards of maximized earnings. Furthermore, this account also allows them to maintain liquidity.
- The monthly service is waived should customers maintain the minimum savings balance.
- Furthermore, this account provides access to higher relationship rates when linked to a qualifying business checking account.
- The FDIC insures balances up to a certain amount.
- Finally, the account can link to a business checking account to fund overdraft protection.
Chase Business CDs
Businesses who don’t require immediate access to their funds, will find this account to a great solution to their growth needs. Furthermore, the longer the funds are invested for, the higher the potential yield.
- This type of account provides competitive interest rates.
- Customers need to make a minimum deposit.
- Also, terms are flexible and available anywhere from 30 days to 10 years.
- Finally, the FDIC insures deposits up to a certain amount.
Business Credit Cards
Ink Business PreferredSM Credit Card
This card allows customers to earn 3x points when they spend in the select business categories. Furthermore, customers stand the chance to earn bonus points should they meet the necessary criteria.
Ink Business CashSM Credit Card
With this card, customers will earn flexible cash back rewards. Furthermore, customers won’t pay any interest during the first year on purchases or balance transfers. Also, there is no annual fee on this card.
Southwest Rapid Rewards® Premier Business Credit Card
This card provides customers with great travel incentives. The reward flights have no blackout dates, which allow customers to plan their trips with ease. Customers will also receive double points on certain purchases, and a single point on the rest. Furthermore, there are also 6,000 anniversary bonus points.
United MileagePlus® Explorer Business Card
There is no reason why business travel cannot have its benefits as well. With this card, customers will 2x miles on business purchases. Furthermore, they can use these miles and take advantage of special travel perks. There are also bonus up for grabs to those who meet the criteria. Finally, customers don’t pay an annual card fee in the first year.
Marriott Rewards® Premier Business Credit Card
Customers are exposed to points on all business purchases and will earn 5x at Marriott. Furthermore, customers stand the chance to earn bonus points should they reach the minimum spending criteria in the specified time.
Business Line of Credit
Businesses who need a product to help them with the occasional cash flow situation will find this the ideal fit. Furthermore, with this type of credit, businesses can also purchase inventory and finance accounts receivable.
- The loan amounts vary according to the needs of the clients.
- Furthermore, the interest rate on the loans are
- Customers pay a low annual fee on the credit agreements.
- Also, these loans are known to provide manageable monthly repayments.
- Finally, this product may be used as overdraft protection when linked to a Business Banking Checking Account.
Commercial Line of Credit
Customers who need to finance large working capital requirements will make use of this type of loan. Furthermore, this option allows customers to expand into new markets or manage seasonal changes.
- The loan amounts are large and start from $500,000.
- Customers will pay a variable interest rate.
- Furthermore, the terms are 12 to 24 months and are renewable thereafter.
- These loans carry no annual fee.
- Finally, the loan allows interest-only monthly payments.
Chase Business Quick Capital®
This product is available to pre-qualified clients who hold certain products with Chase Bank. Furthermore, this product allows customers to apply for their loan electronically. Should all the administration be handled before the cut-off time, clients will have the funds disbursed to their account the same day.
- The process is entirely digital.
- Customers also choose the amount and term length options.
- Customers are not required to visit the branch at any time during the process.
- Finally, the repayments are quick and convenient and take place automatically from the Chase business checking account.
These loans are designed to allow businesses to prosper. With these loans, customers benefit from longer repayment terms. Furthermore, these loans offer higher borrowing limits as well.
- The qualifying criteria for these loans are often lower than for conventional bank loans.
- There is also greater flexibility in repayment terms and lower monthly payments.
This option is suitable for those who do business with overseas parties and require funds to keep things afloat while they await payment. Some of the options available to businesses include:
- Commercial/Import Letters of Credit
- Standby/Performance Letters of Credit
- Documentary Collection
Commercial Real Estate Financing
Businesses who require a fixed location for a long period may want to consider financing their own commercial real estate. Apart from removing leasing uncertainties, it also provides the business with access to another asset on their balance sheet.
- Customers have the option to buy, build, or refinance owner-occupied real estate.
- Furthermore, customers choose between fixed or variable interest rates.
There are a number of options to choose from, including equipment and commercial vehicles.
- Customers have access to up to 100% finance.
- There are also loan or line credit options available.
Apart from receiving cash and electronic deposits into their accounts, businesses may also need to access facilities that allow them to process card payments or other means of payment.
Chase Mobile Chekout – On the Go
This option is suitable for those who have traveling businesses who have different venues or locations every day or week. This includes market traders, food vendors, and more.
Orbital® Virtual Terminal – Online
This service allows businesses to receive payments on their website through an online payment portal.
Merchant Devices – In Store
An important additional to especially retail traders, as it allows customers to use their cards for purchases. Furthermore, these machines can accommodate Apple Pay and chip cards as well.
Chase Bank Corporate Banking Product Offerings
These services and products allow corporates to keep the corporate machine going and the money flowing.
- Multifamily Lending
- Commercial Mortgage Lending
- Real Estate Banking and
- Community Development Bank
Credit and Financing
- Asset Based Lending
- Chase Capital
- Equipment Financing
- Employee Stock Ownership Plans and
- Syndicated Finance
- Payables and Receivables
- Liquidity Management
- Commercial Card
- Merchant Services and
- Fraud Protection
- Foreign Exchange
- Global Trade
- Multinational Corporations
The bank provides a wealth of expertise in the various industries. These include:
- Agribusiness and Food, Beverage, and Energy
- Financial Institutions, Government, and Healthcare
- Heavy Equipment Distribution, Higher Education, and Life Sciences
- Media and Entertainment, Multinational Corporations, and Not-for-Profit
- Real Estate and Technology
Review of Chase Bank – 8 of 10
As with many of the other financial institutions on this complaints forum, Chase Bank receives a lashing from customers. Furthermore, it only manages to scrape in a rating of 1 of 5, purely because the option of a round 0 doesn’t exist.
According to this website, customers ratings have improved for the big banks. Furthermore, they’ve managed to surpass the ratings of small banks.
Financial Stability Rating
The bank enjoys fairly stable ratings with the ratings bureaus, however, the issue with the Department of Justice could just swing these ratings down again.
Security of Funds
The FDIC insures to funds up to the prescribed regulated limits.
Review by Critical Review
There are many things that we like about the bank and purely just criticizing it for what happened in the sub-prime market is not fair. The bank offers customers a variety of options to do their banking with ease. Apart from offering personal and private banking, tailored projects meet the needs of businesses and corporates.
What the bank needs to work on, however, is its PR. There are many things that pop up where PR is concerned which can cause a substantial amount of reputational damage. Also, lending practices need to be fair and without discrimination.