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I know the gut reaction is that it is unbelievable that someone with $50,000 isn't "worth" having as a customer, but there are 2 things to consider: 1) JPMorga
by wtvanhest 15y ago
I know the gut reaction is that it is unbelievable that someone with $50,000 isn't "worth" having as a customer, but there are 2 things to consider:
1) JPMorgan is saying that future regulation is what is driving those customers to be unprofitable.
More importantly:
2) For someone making business decisions, it is important to really look at your customers to determine which are profitable. There is a consistent flow of stories from startup founders about the dangers of trying to satisfy every customer.
This should be an example of a calculated way a company looks at their profitability and customer mix responsibly and with careful analysis rather than gut feel.
*As a caveat, we don't really know whether those customers would be unprofitable or not, and JPMorgan may be making a political statement about future regulation through their financial documents.
- schraeds 15y agoThe gut reaction is that no one wants to hand over money to someone who isn't appreciative of it.
- wtvanhest 15y agoYeah, but it is mutual. They don't want the money either which is often the case for customers. You/I work with them because you meet them, not because you/I should.
- ahi 15y agoJPMorgan hasn't had to figure out how to make those customers profitable because they've been able to load them up with fees. New regulations are giving them the option of pushing customers away, or figuring out how to make them profitable. Raise your hand if you think there's no efficiency gains to be had in banking services? They have been through this before when credit unions started offering free checking. Somehow they managed. JPMorgan execs are saying they can't or won't adapt to the changing market. "We're a dinosaur. Save us Washington! Save us!" This article is part of their lobbying efforts. Entrepreneurs should see it as an opportunity.
- gaius 15y agoSave us Washington! Save us! But they are asking Washington to NOT do anything. This isn't a bailout.