The news: JPMorgan has launched new "financial center" branch concepts in New York City and San Francisco, aimed at attracting a mass affluent customer base—those with over $750,000 in deposits and assets, per Yahoo Finance.

• The bank plans to open a total of 30 financial centers across seven US states by the end of 2026.

Dive deeper: JPMorgan’s head of consumer banking Jennifer Roberts told Yahoo Finance that the bank “is aiming for an experience that is as much about hospitality as banking.”

• These centers replace more traditional teller windows with library-style sitting rooms and concierge bankers who provide personalized services like assistance with stock buying, retirement planning, and dealing with credit card fraud
• The customers also get access to free branded umbrellas, made-to-order coffee, and "signature bites" provided by various JPMorgan clients. At the New York City location, this offering will start with chocolates from Dylan's Candy Bar, for example.

Can it work? The Yale Ledger listed these strategies as ways for all businesses to attract high-wealth clients:

• Offering premium in-store experiences 
• Provide exclusive products or services
• Partner with complementary brands
• Prioritize customer service 

And JPMorgan’s strategy aligns with this guidance. However, it isn’t the only major US bank vying for this demographic’s business. For example:

• Like JPMorgan, Bank of America (BofA) plans to open more than 165 financial centers by the end of 2026 in which customers with more “complex financial needs” can get personalized service.
• U.S. Bank is rolling out a multi-product offering, known as Bank Smartly, which includes a Smartly Savings Account and a Smartly Visa Checking Card that rewards affluent users for their high balances.
• And Fifth Third announced plans to restructure so it can better serve the mass affluent market.

Financial institutions (FIs) have struggled to serve this market segment, and there’s a major growth opportunity for FIs with strategies that best resonate with them. 

Key takeaways: Banks seem to be learning from luxury retailers, which have heavily invested in new flagship stores in the hope that luxe, modern design, and high-end experiences will attract shoppers and convince them to spend more.  

These luxury experiences can’t be replicated online, which could give banks like JPMorgan and BofA—which are focusing on their in-person experiences—a leg up on their digital competitors.