I do not have anything with JPM. They asked net worth and would I consider moving an account to JPM PB.
interesting. thanks for the info.
I've talked to several people recently with Chase. I've been getting calls this week from Chase Private Client which is the banking product for lowbrow folks like me.
I've been told JPM Private BANK is 5 million (used to be 2) and Chase Private CLIENT is 500K but you can get in the door with 100K as long as you have a clear plan to get to 500K in short order.
One problem for this business model is there is no place for younger people who have high income, low DTI, and a high rate of monthly investing/savings unless they got a pile of money from daddy.
A second demographic excluded includes someone who has a very high household income and is older, say 40s, but is self-made (again no daddy's money). Such people are still in the accumulation stage and often have employer-captive retirement accounts, other than IRAs. In other words, they have high net worth and high income but not a lot of liquidity.
Both of these groups are people who probably have a lot of discretionary income and a future filled with high liquid net worth.
The problem, as I see it, for Chase is how does it get these two groups on board. These are the people who, in the future, will have very high liquid net worth and be excellent candidates for Private Bank or Private Client. I have no evidence of this, but perhaps letting people in these two groups get a foot in the door with the Pd card and experience the great service afforded to Private Bank and Private Client customers is a marketing tool to try to capture these folks as customers. Sort of like how Pepsi and Coke had a great marketing program to get their products into elementary, middle, and high schools; get them hooked early and have customers for life. I might be giving Chase too much credit for being organized enough to come up with a plan to board accounts from people who have the potential to high profit customers.
This is about the only way I can see Chase wanting me and my spouse as clients for the Pd card. I am sure Chase has sophisticated ways to determine income and DTI. In sum, letting people from the two groups I described in the door is a way to still make money from people who have high income, low expenses, but not 5 million dollars in liquid net worth. Our HHI, according to the kiplinger's calculator, is in the top 1% but our LNW is under 1 million although our total net worth (that is including illiquid accounts like retirement vehicles that cannot be touched easily until 59.5 years of age) is higher.
So my theory is Chase wanted a way to have an "elite" banking product that is exclusively geared toward high LNW people but allows for high income and people with the potential for high LNW to still become clients.
I wasted a lot of time this week looking into Private Client, as well as competitors such as HSBC Premier and CITIGold. HSBC Premier has a much lower threshold (100K) to get in the door. The people I talked to were very professional. The CITIGold folks were rather snobbish, if you ask me, and did not seem to think we were worthy since we could not deposit 1 millions dollars today in an account that pays .05 APY. There are other banking services like these out there. I think my summer project is to contact them all and write an article about them
I should note that Chase has been extremely disorganized regarding what is private BANK and CLIENT. Two local branch managers here were pretty clueless (although nice and professional). One ogled my Pd card like a kid on Christmas morning. If someone is considering Chase Private Client of JPM Private Bank I highly recommend you only open accounts if you have a local office.
thoughts?
Edited by hegemony, 16 May 2012 - 11:09 PM.
