Chase Bank & the Student Relationship with Finance

Introduction

Walking through New York City, it is nearly impossible to avoid a Chase branch. With more than 4,700 branches nationwide and the highest concentration in New York City, JPMorgan Chase is more than a global financial institution; it is also the neighborhood bank that many students encounter first (JPMorgan Chase, 2025). For undergraduates and graduate students, opening a checking account or applying for a student credit card often represents their first formal step into the world of personal finance.

This case study examines Chase Bank from the dual perspective of corporate finance and student experience. On the one hand, Chase is a financial giant, managing trillions in assets and shaping global banking trends. On the other hand, it is the provider of basic financial services to students learning to budget, save, and build credit. The interplay between Chase’s institutional strategies and student financial realities provides valuable insight into how corporate models affect individual lives.

The analysis will begin by examining Chase’s business model and the role of retail banking within its broader corporate finance structure. It will then explore how Chase markets to and manages student customers, highlighting both opportunities and risks. A comparative discussion with fintech challengers will show why students might turn to alternatives, while a focus on financial literacy and ethics will emphasize the responsibilities large banks hold when serving vulnerable populations.

The Business Model of Chase

JPMorgan Chase is the largest bank in the United States by assets, with a balance sheet exceeding $4 trillion as of 2025 (JPMorgan Chase, 2025). Its operations are divided into four main segments: Consumer and Community Banking, Corporate and Investment Banking, Commercial Banking, and Asset and Wealth Management. While investment banking and asset management attract the most attention, the consumer banking division generates consistent revenue through deposits, loans, and fees.

Consumer and Community Banking (CCB) is where students interact with Chase. It includes checking and savings accounts, credit cards, mortgages, auto loans, and small business banking. In 2024, CCB contributed more than $60 billion in revenue, representing nearly 40 percent of JPMorgan’s total (Bloomberg, 2025). The division’s profitability comes not just from direct account fees, but from the cheap, sticky deposits it provides. Low-cost student checking accounts help fund lending activities that earn higher yields.

Chase’s strategy rests on cross-selling. A student who opens a checking account may later apply for a credit card, take out an auto loan, or eventually secure a mortgage. Over time, the lifetime value of a student customer can be significant. This is why Chase invests heavily in student-focused products, such as the Chase College Checking account, which waives fees for up to five years, and entry-level credit cards that allow students to build credit.

The Student Experience: Banking as Education

For students, Chase is often the first teacher of personal finance. Opening a checking account introduces concepts such as direct deposit, overdraft protection, and account fees. Applying for a credit card requires understanding interest rates, credit limits, and payment cycles. These lessons are practical, immediate, and sometimes expensive.

Students benefit from Chase’s convenience. With branches on or near many campuses and a dense network of ATMs, Chase provides accessibility that fintech competitors cannot match. Mobile banking apps, digital payments, and real-time alerts help students manage accounts with relative ease. The ability to integrate checking, savings, and credit into one platform reduces friction for inexperienced users.

However, risks are real. Overdraft fees, though declining in recent years, still affect many students who live paycheck to paycheck. Credit card debt can accumulate quickly, especially when students use cards to cover education-related expenses. While Chase provides financial literacy resources online, many students do not proactively seek them out, leading to knowledge gaps. In this sense, the bank’s profitability partially derives from the very mistakes that financially inexperienced customers make.

Corporate Finance Meets Student Banking

From a corporate finance perspective, student banking is a long-term investment. Each student account represents a low-cost liability for the bank and a potential asset in terms of future lending. Deposits from student checking accounts contribute to Chase’s capital base, which supports loan generation across its portfolio. In times of rising interest rates, this model becomes particularly valuable. Deposits remain relatively inexpensive compared to wholesale funding, and Chase can lend at higher rates, expanding its net interest margin (Federal Deposit Insurance Corporation, 2024).

At the same time, Chase uses student banking to acquire customer data. Spending patterns, credit utilization, and savings behavior allow Chase to build detailed financial profiles. These profiles feed into marketing strategies for additional products, from investment accounts to mortgages. For students who eventually achieve upward mobility, Chase positions itself to remain their primary bank across life stages.

The corporate logic is clear: by providing student-friendly accounts now, Chase secures profitability later. The challenge lies in balancing this logic with the ethical responsibility of serving a financially vulnerable demographic.

Illustration of the lifetime value of a student customer at Chase. Starting from low-margin checking accounts, profitability grows significantly as customers adopt credit cards, loans, mortgages, and eventually wealth management services.

Comparison with Fintech Competitors

Students today are not limited to traditional banks. Fintech companies such as Chime, Revolut, and Robinhood offer alternatives that emphasize transparency and digital convenience. Chime, for example, promotes no-fee checking and early direct deposit, appealing directly to younger customers wary of traditional banking fees (CNBC, 2024). Robinhood, though primarily an investment platform, attracts students with commission-free trading and a sleek mobile interface.

Compared with these challengers, Chase offers stability and scale. Its products are backed by the safety of a federally insured institution and the reputation of the largest U.S. bank. Yet fintechs highlight the inefficiencies of traditional banking. Students drawn to low-cost, mobile-first services may find fintech offerings more aligned with their digital lifestyles.

Chase has responded by investing heavily in digital banking. Its mobile app ranks among the highest in usability, and the bank has reduced overdraft fees to remain competitive. Still, fintech competitors continue to highlight a cultural shift in student banking. Younger customers expect more transparency, fewer fees, and a digital-first experience. Chase must adapt to retain them.

Student Banking as a Gateway to Wealth Management

One overlooked aspect of student banking is its connection to wealth management. While undergraduates may only hold small balances, Chase views them as potential future clients for investment and advisory services. As students graduate, secure jobs, and begin saving, they may transition into asset management customers.

Chase’s Wealth Management division, under the J.P. Morgan brand, manages trillions in assets. It positions itself as the next step for students who have grown comfortable with Chase products. For instance, a student who begins with a checking account may later be targeted for J.P. Morgan Self-Directed Investing, which offers online brokerage accounts. Over time, that relationship can grow into managed portfolios and financial planning.

This long-term strategy illustrates the importance of student accounts in Chase’s broader financial model. What begins as a low-margin relationship often evolves into a profitable, multi-product connection that supports both retail and institutional arms of the bank.

Ethical and Policy Considerations

The relationship between Chase and students also raises ethical questions. Students are financially vulnerable, with limited income, little savings, and minimal financial literacy. Charging overdraft fees or offering credit cards with high interest rates risks exploiting this vulnerability. Regulators have increasingly pressured banks to limit such practices, and Chase has reduced overdraft fees and expanded educational resources in response (Consumer Financial Protection Bureau, 2024).

Still, gaps remain. Many students do not fully understand credit reporting, the long-term consequences of debt, or the cumulative costs of fees. This raises the question of whether banks should be required to provide more proactive financial education as part of account offerings. Chase has launched partnerships with universities and non-profits to address these gaps, but the scale of the challenge remains significant.

From a policy perspective, ensuring that large institutions like Chase serve students fairly is crucial for financial inclusion. Students who begin their financial lives with poor experiences, such as accumulating debt or overdraft penalties whichmay develop mistrust in financial institutions. This undermines both individual financial health and broader economic participation.

The Student Perspective in Practice

From the perspective of a student in New York City, banking with Chase offers both convenience and frustration. Convenience comes from the sheer number of branches and ATMs, integration with mobile apps, and the ability to build credit through accessible products. Frustration comes from navigating hidden fees, understanding complex account terms, and balancing financial obligations with limited income.

Students often experience Chase not as a global banking powerhouse but as the local branch near campus. It is where they cash their first paycheck, deposit financial aid refunds, or seek assistance when an account overdrafts. These interactions shape perceptions of banking and finance more broadly. For many, Chase is not just a bank; it is their first financial educator, for better or worse.

Conclusion

Chase Bank’s relationship with students illustrates how global finance intersects with everyday life. For JPMorgan Chase, student banking is a strategic investment in future profitability, providing low-cost deposits, cross-selling opportunities, and long-term customer value. For students, Chase is a gateway into the financial system, offering both tools and risks.

The analysis shows that Chase’s business model depends on acquiring student customers early, managing them profitably over time, and transitioning them into wealth management clients. It also reveals ethical concerns about serving vulnerable populations fairly. The student perspective underscores that while Chase provides convenience and access, it also exposes students to fees and debt that can shape financial outcomes for years.

Ultimately, Chase demonstrates the dual nature of banking. At the corporate level, it is a trillion-dollar balance sheet balancing risk and return. At the student level, it is a first bank account, a credit card, or an overdraft fee. The challenge for both Chase and policymakers is ensuring that the bridge between these two levels supports financial inclusion and stability.

References

Bloomberg. (2025). JPMorgan Chase consumer banking revenue report. Bloomberg Finance. https://www.bloomberg.com

CNBC. (2024). Chime and fintech banking trends among U.S. students. CNBC. https://www.cnbc.com

Consumer Financial Protection Bureau. (2024). Overdraft fees and consumer protection in student banking. CFPB. https://www.consumerfinance.gov

Federal Deposit Insurance Corporation. (2024). Net interest margins in U.S. commercial banking. FDIC. https://www.fdic.gov

JPMorgan Chase. (2025). Annual report 2025. JPMorgan Chase & Co. https://www.jpmorganchase.com