Research Paper About Finance
Benjamin Franklin once said, “A penny saved is a penny earned”. In these times of financial uncertainty, saving becomes an even more important part of people’s lives. With so many different banking institutions around, people need to properly discern which can truly be trusted to protect their hard-earned cash. While the United States suffered a major economic blow in 2007 their banks have remained one of the strongest in the world. This paper will present the viability of three of these banks namely JPMorgan Chase Bank, Citibank, and US Bank. By comparing their financial position, customer service, and community involvement, this paper will determine which among the three is most trustworthy in terms of retail banking.
JPMorgan Chase Bank is one of the oldest banking institutions in the United States. In 2009 it was ranked number 1 in Global Investment Banking, with over US$2 trillion in assets (JPMorgan Chase & Co., 2010). It was the front-runner among those who survived the financial crisis becoming the only bank to post a profit during that time (Gogoi, 2009). Furthermore, JPMorgan Chase Bank was the only bank among the top four banks in the United States to fully pay the Troubled Asset Relief Program (TARP) (Gogoi, 2009). The bank also boasts of a list of services from investment banking to asset management. Its rich history makes it one of the most formidable banks today.
Citibank, the banking institution of financial giant Citigroup, is not too far behind JPMorgan Chase Bank. Citibank remains the largest full service banking institution in world (Citi, 2010). It is visible in more than 100 countries and territories around the world and its Internet banking services has an estimated user base of 15 million (Citi, 2010). Not being spared from the financial crisis of 2007, Citibank had to rely on the US Government bailout of US$45 billion in 2008. However it remains the third largest banking institution in the United States (Citi, 2010). On the other hand, the fifth largest banking institution in the United States today is US Bank. It is the commercial banking institution of US Bancorp, a leading financial group in the country. US Bank is present in 24 states with about 2850 full service banks (Author, 2009). After the financial crisis US Bank was one of the first banks to repay the TARP (US Bank, 2010).
After JPMorgan Chase Bank acquired Washington Mutual it increased its national visibility (Gogoi, 2009). It allowed the bank to reach a greater number of clientele. The bank has always maintained a very conservative image. This conservative practice is what has kept the bank stable all these years. To JPMorgan Chase Bank, it is being able to do the best to manage and operate the business, ultimately doing the right thing, is what they can offer their clients (JPMorgan Chase & Co., 2010). Citibank in turn is known to be one of the most dynamic banks in the world. “The Citi Never Sleeps” is their slogan (Citi, 2010). The bank reassures their clients that they will always be present in their lives no matter the circumstance. One of their most important objectives as a company is to “treat customers fairly and support them in times of financial difficulty” (Citi, 2010). This is why the bank is always careful to align business objectives with the needs and requirements of the times. While JPMorgan Chase Bank and Citibank both have admirable customer service practice it is US Bank that has been chosen as most trustworthy bank for five consecutive years (Author, 2009). A study by the Ponemon Institute showed that clients prefer the servicing of US Bank in terms of security and privacy (Author, 2009). The study further shows that the bank has consistently satisfied its client base, being named among the top 5 most trusted banks since 2003 (Author, 2009). The reason behind this may be simply explained by the company’s philosophy, “when people work together, great things happen” (US Bank, 2010).
If there was one area that all three banks may be considered equal, it’s in community involvement. They are involved mostly in areas of education, environment, and supporting small businesses. JPMorgan Chase Bank pledged US$325 million to help in the expansion of chartered schools so that more children may attend school in different communities. The Chase’s Chartered School Program aims to support the acquisition, construction and/or renovation of at least 40 schools through equity, debt, or grants (JPMorgan Chase & Co., 2010). Meanwhile Citibank focuses on the environment. The bank promised a support of US$50 billion over the next 10 years for projects that address climate change (Citi, 2010). The bank was ranked number 4 in Computer World’s Top Green IT Companies of 2009 (Citi, 2010). Finally, US Bank has given a total of US$20.6 million in cash grants for various causes in 2009 alone (US Bank, 2010). These are the highlights of the banks’ community involvements however the three all have more extensive records in this area. In fact they have all made a strong mark in communities they are present in.
When clients search for a bank they will entrust their hard-earned money, they usually look at the stability of the bank, how they treat their clients, and how socially responsible they are. The three banks chosen for this paper can easily meet the qualifications that most clients have. Since all three may seem equal in these areas, two important factors may be considered to choose one bank over the others, accessibility and global positioning. At this time when more and more people are moving from one place to another it is important that their bank should be easily accessed. At the same time it also helps that the bank does not only focus on a single economy to survive, a globally visible bank is probably most capable of withstanding the constantly changing economies. So considering all these factors, the bank to choose should be Citibank. Among the three it is Citibank that seems to be designed to provide the best banking services required by this fast-paced and ever-changing generation.
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