JPMorgan Chase & Co. Marks 90 Years of Service in Detroit and 10-Year Anniversary of $200 Million Commitment to City’s Economic Recovery
September 19, 2023 (Detroit) – JPMorgan Chase is marking 90 years of providing banking services in Detroit while highlighting the lessons learned from the city’s comeback over the last decade. Since the city filed for Chapter 9 bankruptcy in 2013, the firm has committed more than $200 million in philanthropic capital, skilled volunteerism, low-cost loans and equity investments to help support Detroit’s economic recovery, focusing on skills training and job creation, community development and affordable housing, small business growth and financial security for residents.
In collaboration with local community partners, JPMorgan Chase’s $200 million commitment in Detroit helped support the following:
- More than 72,000 Detroiters were placed into apprenticeships, full, or part time jobs;
- Nearly 17,000 Detroiters participated in job training programs aligned with high-demand industries;
- More than 13,000 small businesses received capital or technical assistance;
- More than 5,000 affordable housing units were created or preserved;
- More than 15,000 Detroiters received services to improve their financial health.
While there is more work ahead, Detroit’s economy has made meaningful progress over the last ten years. From 2013 to 2021, vacant housing decreased by nearly 20% while loans to Black households have increased significantly up more than 96%.1 From 2015 to 2021, the per capita income of Detroit’s residents increased by 23%,2 the percentage of unbanked households has decreased by more than half,3 and the median credit score rose 9%.4 According to the National Bureau of Labor Statistics, Detroit’s unemployment rate fell below 7% in 2023, its lowest since 2000.
“Looking back, we see the returns on our investment in the strength of our customers and communities ― their ability to build wealth, create lasting careers, plan for their financial futures and achieve their dreams,” said
Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. “We also see the returns in the form of a stronger local economy and people working together. Today, it’s clear that a stronger Detroit is good for business, too.”
“One of the first phone calls I received as Mayor of Detroit was from Jamie Dimon, who said he wanted to make a significant investment in Detroit and Detroiters. Since that day, JPMorgan Chase has been our partner and a catalyst for much of the progress our city has made over the past 10 years,” said Detroit Mayor Mike Duggan. “Their investment really laid the groundwork for others who have invested in Detroit since. This partnership is a testament to how business, community and government can together drive long-term growth."
Business Growth and Opportunity
Today, JPMorgan Chase remains one of the largest banks in Detroit and is leveraging its scale and business expertise to help support the city’s growth and recovery. Over the course of the firm’s $200 million commitment, JPMorgan Chase’s market share in Detroit has expanded, its commercial loans have increased, the accounts and balances of its consumers and small business clients have risen, and the firm’s mortgage originations have increased. This includes more than 800,000 consumers checking, saving and credit card accounts, mortgage and auto loans, and business banking loans in Detroit. The firm has also continued to finance thousands of hospitals, schools, nonprofits and government institutions, affordable housing units and mid-sized and large companies in Detroit.
The firm’s commitment in Detroit reinforced the importance of proximity to the local community. As part of the firm’s ongoing efforts to expand economic opportunity, its minority entrepreneurship program continues to offer small business owners free mentorship, advice and education. Detroit is one of 21 Cities to host the program nationally since it was created in 2020. To date, Chase senior business consultants have mentored 133 small business owners in Detroit through this program.
“Detroit’s resurgence is a testament to what can be accomplished when government, business, and community leaders come together to create economic opportunity,” says Peter Scher, Vice Chairman for JPMorgan Chase. “Our investment here continues to serve as a model for how we seek to drive long-term growth in the communities we serve in the United States and around the world.”
A Model for Communities Around the World
From the firm’s $200 million commitment, it has learned several key lessons that continue to inform its business and philanthropic commitments, as well as its approach to driving inclusive growth in communities around the world:
- Investing in communities is good for business. The growth of a community’s private sector is inextricably tied to the strength of local economies. Investing in neighborhoods and local businesses is about acknowledging the fact that companies cannot outgrow the communities they serve.
- Listening closely to the community is the first step to revitalization. Connecting with and understanding the community starts by listening closely to its local leaders to understand where areas of opportunity and collaboration exist.
- Staying focused on distinct strengths and expertise. Companies must identify the areas where they can bring unique value, resources and expertise to drive meaningful change.
- Collaborating is critical. Identifying common objectives across industries and sectors is fundamental to drive systems change.
- Delivering systems change requires more than just financial investment. Human capital is as important as financial commitments. The impact of access to capital on a business and a community is magnified when accompanied by thoughtful, tailored technical assistance.
- Promoting strong, diverse capital ecosystems is critical to redevelopment. Diverse financial institutions, such as Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), play an important role in providing financial services, including mortgages and small business loans, to underserved communities. Strengthening these institutions with capital and expertise is essential given their multiplier effect.
- Identifying innovation and scaling it. No two communities will have the same strategy for inclusive growth, but the approach for taking on these challenges should stay the same: Listen to the community, identify areas where business can help catalyze community goals and collaborate closely with the community. Where it makes sense, tap into the creativity of other markets to replicate innovative solutions that have proved successful.
Some of the firm’s business priorities and programs, which have been informed by these lessons, include its branch expansion to all lower 48 states, investments in improving employer-sponsored health care, its $30 billion Racial Equity Commitment, its efforts to help remove barriers to employment for people with criminal records and its strategies for growing its business and investing in communities around the world, from Greater Washington, D.C. to Greater Paris.
Expanding Chase’s Virtual Call Center
As part of JPMorgan Chase’s ongoing commitment to advance long-term, inclusive growth in the city, the firm expanded its virtual call center in Detroit:
- Looking to expand the availability of customer service specialists, in September 2022, the firm announced a new virtual call center in Detroit. These full-time, home-based roles provide access to a steady income with opportunities for career growth, financial wellness and tuition assistance for local residents primarily from underserved neighborhoods.
- These virtual customer service specialists help build relationships with customers over the phone and help them manage their financial accounts. While the roles are virtual, teams gather at the Corktown Community Center Branch for training and face-to-face meetings. Employees are paid no less than $24/hour and receive an annual benefits package worth about $16,000.
- Initially, the firm hired approximately 50 members of the Detroit community and has already nearly doubled in size. In July 2023, the firm began training its third cohort and will have hired more than 90 virtual customer service center employees since its launch in fall 2022.
- This effort also supports the firm’s efforts in providing a second chance to people with criminal backgrounds. Through policy and our own hiring practices, JPMorgan Chase is helping remove barriers to employment for people with criminal records and helping them find meaningful career opportunities and access greater economic opportunity. As a result, some Detroiters with criminal records have been among those finding new career paths at the firm. Second Chance hires represent approximately 10 percent of the firm’s new hires in the U.S. over the last three years.
- Expanding on the success of the virtual call center in Detroit, the firm is looking to replicate the model in other cities in the U.S.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and $313 billion in stockholders’ equity as of June 30, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.