Worcester Business Journal

16 Worcester Business Journal | October 3, 2022 | wbjournal.com F O C U S B A N K I N G & F I N A N C E BY SUSAN SHALHOUB Special to WBJ A new bank has come to town. And it's a big one. Chase, a division of New York City-based JPMorgan Chase & Co., has a branch now at Gold Star Boulevard in Worcester. Chase is the largest bank in the U.S., by assets, according to the Federal Financial Institutions Examinations Council. At 3,000 square feet, the full-service Worcester branch is now open, offering services such as home lending and business banking. But how will Chase's arrival impact local financial institutions, especially with several – such as Main Street Bank, Avidia Bank, Webster Five, and Cornerstone Bank – having decreased or held off on opening new branches, while Chase plans to double its Massachusetts footprint? Will a big bank like Chase put Central Massachusetts-headquartered banks at a disadvantage? Industry leaders here don't think so. Al Ahmed, executive vice president, retail banking for 10-branch Cornerstone Bank of Worcester, sees it as good news for consumers. "I don't see it as big versus small, but having more banking options for customers in our community," Ahmed said. "Whether digital or in-person offerings, our communities require a mix of all." Roxann Cooke, Chase regional director, and Massachusetts Bankers Association President & CEO Kathleen Murphy agree. Both say competition strengthens communities. "is is not a matter of outpacing the other banks," Cooke said. "A bank branch in a community where that branch will be successful is a very positive reflection of the local economy as a whole," said Murphy. "It's good for the consumers and for business. What's good about business here is that it travels all over the world." Right-sizing Chase will strive to have customers avoid the experience of a big-bank vibe though, full of heavy automation and scarcity of real people. e branch will have eight to 12 employees, all local hires, said Cooke. "Our branch manager, who has been helping with our branch in Boston, lives in Worcester," said Cooke. "When this opportunity came up, he raised his hand. Not that he minded the commute, but he wanted to give back to the community where he lives with his family." Branch offerings are driven by what consumers want most, and human contact is still in demand, and not just for older customers. According to American Bankers Association data collected from Oct. 1-3, post-pandemic, 4% of Gen Z customers, 5% of Millennial banking consumers, 10% of Gen X customers, and 17% of Baby Boomer banking clients use branches. Murphy said there are so many banking options now, but some transactions (she uses the closing of her late father's estate as an example) still need to be done face-to-face with a banking employee, at a branch. "You just can't do that with an app," she said. Big bank, big plans Before now, the Central Massachusetts locations for Chase had been Framingham and Acton. Next e nation's largest bank is opening its first branch in Worcester, as local banks adjust to a changing market New kid on the block Al Ahmed, executive vice president, Cornerstone Bank Roxann Cooke, regional director for Chase The Chase branch on Gold Star Boulevard is the bank's first Worcester location. PHOTO | TIMOTHY DOYLE Kathleen Murphy, CEO of Massachusetts Bankers Association

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