JPMorgan Sees a $250 Billion Opportunity in New Credit Card Loan Features
(Bloomberg) -- JPMorgan Chase & Co., the largest U.S. credit-card issuer, is rolling out new features as it seeks to capture more of the $250 billion that its customers borrow from other firms.
The company is unveiling “My Chase Plan” to better compete in point-of-sale financing, Jennifer Piepszak, chief executive officer of JPMorgan’s card business, said during the company’s investor day in New York on Tuesday. The tool allows card customers to select from past purchases of more than $500 and choose to finance them over a longer period with monthly fees instead of being charged interest.
The bank will also introduce “My Chase Loans,” which allows targeted card customers to borrow against unused credit-card lines. Clients can use the Chase mobile app to select a loan amount to be transferred into their checking accounts. They’ll be charged a competitive interest rate, Piepszak said.
“This will be for larger purchases such as a kitchen remodel,” Piepszak said. “This will allow us to compete in the personal-loan space, importantly without taking any incremental risk as this will be a targeted product feature for our existing customers.”
JPMorgan is taking a page from American Express Co.’s book. In 2017, AmEx introduced “Pay It, Plan It,” allowing customers to pay off individual purchases over periods from three months to two years, or immediately for smaller transactions.
JPMorgan’s interest in personal loans sets it apart from some other card issuers. Discover Financial Services has been paring back growth in its personal-loan book after tightening underwriting standards amid increased competition from online lenders.
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