Assignment
PMorgan Chase & Co. is a global financial holding company formed in 2000 by a merger of the financial institutions that today are its two major brands: Chase (formerly Chase Manhattan Corp.) and J.P. Morgan (formerly J.P. Morgan & Co.). In 2004, the company also acquired Bank One Corp.; later, in 2008, it added both Bear Stearns Companies, Inc., and Washington Mutual, in the process creating the second-largest branch network in the United States and bringing its banking services within the reach of 42 percent of the U.S. population. The bank, which operates in more than 60 countries and employs almost 240,000 people worldwide, holds assets estimated to be worth about $2 trillion and is included in the widely watched stock index, the Dow Jones Industrial Average (DJIA). Despite an economic downturn, the bank still posted profits for the last four years in a row.
And now that the nation's economy is improving, the bank is poised for more growth and increased profits. Most people are probably more familiar with the functions performed on the Chase side of the operation. These operations include conducting everyday banking via branch offices, ATMs, telephone, and online; issuing consumer credit cards; serving small businesses with financing and banking services; offering home mortgages and home equity loans; helping customers with personal retirement and investment planning; and making auto and educational loans. In its small-business banking operations, Chase exemplifies the words of J.P. Morgan, who told a Senate subcommittee in 1933 that "Another very important use of the banker is to serve as a channel whereby industry may be provided with capital to meet its needs for expansion and development." Providing capital to small businesses is one of the most important functions the bank fulfills for these business clients. Whether small companies need short-term loans to expand their operations or to bridge the time gap between manufacturing a product and collecting money for the sale, a line of credit to ease their cash flow during a tough period, or a commercial mortgage loan to buy a new factory or warehouse, Chase is ready to lend the necessary funds. The bank also offers several kinds of business credit cards, which small business owners can use for everyday needs when cash is tight.
These cards offer different incentives such as no annual fee, cash back for purchases, bonus points, or no interest on balances paid in full each month. Business debit cards are another option, backed by fraud monitoring and account alerts. Chase is also there to help firms hang on to their money-not only by providing all those branch offices for making deposits but also by handling the safe collection of payments through its lock-box service (through which consumers send bill payments to a post-office box for collection). Chase makes it easier for its small-business customers to deposit checks, too. Now firms can scan paper checks right in their own offices, transforming them into electronic payments so that they can take advantage of online banking's convenience, safety, and speed. Business checking accounts are available as well, with a wide range of specially tailored features and overdraft protection. Business savings accounts and CDs are offered, and business customers can link their accounts to Chase Business Packages to earn additional benefits, such as waived fees and reduced interest rates on borrowing.
The bank even offers payroll processing. Retail firms that accept credit cards like Visa, American Express, MasterCard, and Discover can rely on Chase for payment processing, and they can use the processed funds the very next day. Free technical support is available 24/7, and monthly statements and online reports help firms manage their credit card operations. Business owners can even pay bills, transfer funds, view account balances and transaction history, and send wire transfers by texting the bank from their mobile phones. Additionally, Chase makes it possible for small businesses to conduct transactions globally, whether that means buying goods abroad or accepting orders from international customers.
Questions
1. If you were a small-business owner, would you take advantage of any of Chase's or another bank's small-business banking services? Why or why not?
2. Can you think of any additional financial or banking services that banks could offer to small-business owners?
3. Chase prides itself on its ability to know many of its business customers personally and to keep up-to-date on the industries in which they operate. Why would this familiarity be an advantage for the bank?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.