*By Tanaya Macheel*
JPMorgan Chase is bringing Sapphire to banking, betting it can change affluent millennial customers’ perception of the industry the same way it won them over with its credit cards.
“We’ve built a loyal following of customers through our Sapphire brand and are excited to extend that relationship to banking, not just through access to events and experiences that our customers love, but perks on everyday banking and investing,” a bank spokeswoman told Cheddar.
Next Monday, the largest U.S. bank by assets will launch Sapphire Banking without ATM or foreign exchange fees, unlimited free trades on the stock and ETF trading app it announced Tuesday (and will also launch on Monday), and access to “special experiences” that helped make the Sapphire Reserve and Preferred credit cards such a success, like access to sports and entertainment hospitality lounges and early ticket sales and special seating for sports and entertainment events.
Chase unveiled the Sapphire Reserve card in 2016, when anti-bank sentiment among the under-40 crowd was at its peak. At the time, seemingly no one in the industry thought the demographic wanted credit cards. The belief was that the generation, saddled with student debt and having felt the effects of the financial crisis on their families, was pretty strictly anti-debt. But Sapphire proved that theory wrong, beginning an arms race among competitors including Citi and AmEx to improve their own rewards offerings.
On top of that, in second quarter earnings reports Chase and Citi both reported increased spending on credit cards but declines in revenue, indicating that consumers love their cards but are keeping balances lower or paying them off faster, which isn’t good for the banks.
Whether or not the incentives are enough to make people switch their bank account providers to Chase remains to be seen, but the bigger concern for the company is whether or not it [can bring deposits back](https://cheddar.com/videos/jpmorgan-to-unveil-new-investing-app) into the bank.
Customers rarely “switch” checking account providers but instead open multiple accounts. Today, however, banks aren’t competing against other banks for those deposits ー they’re competing against fintech firms, retailers, and anyone else with a mobile wallet. For example, there are $2 billion in customer deposits sitting idly in Venmo accounts and another $2 billion in customers’ Starbucks apps — not to mention Amazon Prime Reload, PayPal, Robinhood, Acorns, and, increasingly, Coinbase.
Next week, existing customers with Chase Premier Platinum accounts, which require a minimum balance of $75,000, will be automatically upgraded. Those holding less in deposits can still sign up for the account for a $25 monthly fee — that’s $300 annually, which is $150 less than the charge on the Sapphire Reserve card.
Consider it the Prime Effect coming to banking. Chase is betting that affluent millennials will be willing to pay upfront if they’re assured that, in return, they’ll get value that will continue to build as Chase adds more services, effectively becoming a lifestyle membership rather than a purely financial one.
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Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
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A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
