Of all the banking institutions releasing Q2 earnings this week, watch for JPMorgan, whose strong performance can be credited to a growing millennial customer base and continued digital innovation.
Continued development of JPM Coin has garnered interest from customers around the world, especially millennials. The cryptocurrency will reportedly be tested with select customers by the end of the year and demonstrates the firm's goal to increase digital operations.
Digital innovation enhanced the company’s Q1 earnings performance, which surpassed analyst’s predictions. The firm reported mobile users were up 11 percent in the first quarter. However, the bank’s recent decision to shut down Finn, its digital banking app that targeted a younger clientele, could affect mobile user statistics in their second quarter report.
Additionally, it was reported in May that some JPMC customers were moving money into accounts at banks offering higher interest rates. However, most of these customers were keeping Chase as their primary banking institution, according to JPMorgan Chase Co-President and Chief Operating Officer Gordon Smith, who said that people cared about more than just high interest rates.
The bank is sticking to this belief with their continued expansion into other digital projects, introducing services such as eGifting on its Chase app, which now offers gift cards from over 60 retailers that can be sent through the app, and a virtual B2B card created in collaboration with Bora Payment Systems that helps clients pay their vendors.
Internationally, JPMorgan introduced its E-Customs Payment Solution, which fully digitizes and automates cross-border payments of goods — the first foreign bank in China to do so. And the bank is even progressing further into the world of healthcare payments with its recent acquisition of InstaMed, which addresses payments issues in healthcare for consumers, providers, and payers.
JPMorgan’s earnings report will go out at 7 a.m. on Tuesday (July 16) and will be reviewed during a conference call at 8:30 a.m.