Jump to content

Chase Bank: Difference between revisions

From Consumer_Action_Taskforce
m Add some re-references in places they should be
m Added Wikipedia link and proofreading
Line 8: Line 8:
| Official Website = https://chase.com/
| Official Website = https://chase.com/
| Logo = CHASE.png
| Logo = CHASE.png
}}Chase Bank is one of the leading financial services in the United States, as is stated by the following quote. <blockquote>"Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone."<ref name=":0">[https://web.archive.org/web/20250129165337/https://media.chase.com/news/chase-launches-chase-media-solutions "Chase Launches Chase Media Solutions, a New Digital Media Busines"] - archive.org - archived 2025-01-29 </ref></blockquote>
}}'''[[wikipedia:Chase_Bank|Chase Bank]]''' is one of the leading financial services in the United States, as is stated by the following quote. <blockquote>"Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone."<ref name=":0">[https://web.archive.org/web/20250129165337/https://media.chase.com/news/chase-launches-chase-media-solutions "Chase Launches Chase Media Solutions, a New Digital Media Busines"] - archive.org - archived 2025-01-29 </ref></blockquote>


=Chase Media Solutions incident=
=Chase Media Solutions incident=
Following the acquisition of ''Figg'', a card-linked marketing platform<ref>[https://web.archive.org/web/20241203061445/https://www.gofigg.com/ "figg is now Chase Media Solutions"] - archive.org - archived 2024-12-03</ref> in 2022, Chase launched "Chase Media Solutions" on April 3rd, 2024. This platform was marketed as a new digital media business that would provide brands with direct access to Chase's 80 million customers. The service was sold to investors as a new frontier of advertising, based on claims that partner companies would have the ability to use Chase's first-party transaction data to target deals and advertisements to customers based on their purchase history.<ref name=":0" />
Following the acquisition of ''Figg'', a card-linked marketing platform<ref>[https://web.archive.org/web/20241203061445/https://www.gofigg.com/ "figg is now Chase Media Solutions"] - archive.org - archived 2024-12-03</ref> in 2022, Chase launched "Chase Media Solutions" on April 3, 2024. This platform was marketed as a new digital media business that would provide brands with direct access to Chase's 80 million customers. The service was sold to investors as a new frontier of advertising, based on claims that partner companies would have the ability to use Chase's first-party transaction data to target deals and advertisements to customers based on their purchase history.<ref name=":0" />


===Implementation===
===Implementation===
Line 49: Line 49:
This incident represents several concerning trends in modern consumer exploitation:
This incident represents several concerning trends in modern consumer exploitation:


===Data privacy issues===
===Data-privacy issues===
*Large corporations mask their data collection agreements in lengthy privacy policies.
*Large corporations mask their data collection agreements in lengthy privacy policies.
*Financial institutions leverage their unique access to sensitive customer data.
*Financial institutions leverage their unique access to sensitive customer data.
Line 55: Line 55:
*Personal financial information is being monetized without clear consumer consent.
*Personal financial information is being monetized without clear consumer consent.


===Consumer rights concerns===
===Consumer-rights concerns===
*Customers lose control over how their transaction data is used.
*Customers lose control over how their transaction data is used.
*The program was implemented without clear opt-out mechanisms.
*The program was implemented without clear opt-out mechanisms.
Line 62: Line 62:


===Industry implications===
===Industry implications===
*Sets a precedent for other financial institutions to monetize customer data - if one of the world's largest banks can do it, it incentivizes others.
*Sets a precedent for other financial institutions to monetize customer data: if one of the world's largest banks can do it, it incentivizes others.
*Blurs the line between banking services & advertising platforms.
*Blurs the line between banking services & advertising platforms.
*Raises questions about the proper use of financial transaction data.
*Raises questions about the proper use of financial transaction data.

Revision as of 17:27, 29 January 2025


Article Status Notice: Unacceptable Tone/Word Usage

Notice: This Article Requires Change in Tone

This article needs additional work to meet the wiki's Content Guidelines and be in line with our Mission Statement for comprehensive coverage of consumer protection issues. Specifically it uses wording throughout that is non-compliant with the Editorial guidelines of this wiki.

How You Can Help:

If this is a non-Theme article:

  • Persuasive language should not be used in the Wiki's voice. Avoid loaded words, or the causing of unnecessary offense, wherever possible.
  • No direct attacks on named individuals or companies. Malice may be attributed to bad and proven offenders, but only through the use of quotation and citation - never in the Wiki's voice.

If this is a Theme article:

  • Where argumentation is used make sure it is clear and direct but not inflammatory. Avoid strong language, or causing unnecessary offense.
  • No direct attacks on named individuals or companies. Malice may be attributed to bad and proven offenders, in a formal and calm manner.

This notice will be removed once sufficient documentation has been added to establish the systemic nature of these issues. Once you believe the article is ready to have its notice removed, visit the Discord (join here) and post to the #appeals channel.


⚠️ Article status notice: This article has been marked as incomplete

This article needs additional work to meet the wiki's Content Guidelines and be in line with our Mission Statement for comprehensive coverage of consumer protection issues.

This notice will be removed once sufficient documentation has been added to establish the systemic nature of these issues. Once you believe the article is ready to have its notice removed, visit the discord and post to the #appeals channel.

Learn more ▼

Chase Bank
Basic information
Founded 1877
Type Subsidiary
Industry Banking
Official website https://chase.com/

Chase Bank is one of the leading financial services in the United States, as is stated by the following quote.

"Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone."[1]

Chase Media Solutions incident

Following the acquisition of Figg, a card-linked marketing platform[2] in 2022, Chase launched "Chase Media Solutions" on April 3, 2024. This platform was marketed as a new digital media business that would provide brands with direct access to Chase's 80 million customers. The service was sold to investors as a new frontier of advertising, based on claims that partner companies would have the ability to use Chase's first-party transaction data to target deals and advertisements to customers based on their purchase history.[1]

Implementation

The program operates through several key mechanisms:

  • Chase uses its "owned transaction data" to allow brands to target customers based on their spending patterns.[1]
  • Advertisers can specifically target new, lapsed, or loyal customers.
  • Targeted offers appear directly in customers' Chase mobile app and website.
  • The bank charges merchants a fee when customers use deals from the platform.
  • Chase claims to keep customer data within their "highly secure environment" while still allowing precise targeting.

Pilot program results

To test the service, Chase worked with several major brands:

  • Air Canada
  • Solo Stove
  • Blue Bottle
  • Whataburger

During the initial pilot, Air Canada reported a lot of success, with their campaign exceeding expectations through two offer structures that drove considerable revenue & awareness among Chase cardmembers.[3]

Chase's defense

Chase has attempted to justify the program through several claims:

  • The bank maintains that customer data remains within their secure environment.
  • They state they do not share personally identifiable information with brands.
  • The company frames the program as a benefit to customers through cashback offers and personalized deals.[1]
  • Chase emphasizes their status as a "highly regulated company" as a defense for their data practices.

Reception

This decision has come with significant consumer backlash, with multiple concerns raised:

  • Customers complain there is no way to opt out of their data being used for these purposes.[4]
  • Privacy advocates express concern about the bank monetizing personal financial data.
  • Critics argue this represents a violation of consumer privacy and shows the bank's lack of transparency.
  • Social media responses indicate customer discomfort with the program.
  • Users question whether their banking data should be used for advertising purposes.[4]

Broader implications

This incident represents several concerning trends in modern consumer exploitation:

Data-privacy issues

  • Large corporations mask their data collection agreements in lengthy privacy policies.
  • Financial institutions leverage their unique access to sensitive customer data.
  • Companies provide no way or no easy way to opt out of data collection.
  • Personal financial information is being monetized without clear consumer consent.

Consumer-rights concerns

  • Customers lose control over how their transaction data is used.
  • The program was implemented without clear opt-out mechanisms.
  • Existing customers are affected by significant changes to data usage policies without meaningful communication commensurate with the severity of the policy change & invasion of privacy.
  • The practice represents a shift in how financial institutions monetize customer information.

Industry implications

  • Sets a precedent for other financial institutions to monetize customer data: if one of the world's largest banks can do it, it incentivizes others.
  • Blurs the line between banking services & advertising platforms.
  • Raises questions about the proper use of financial transaction data.
  • Demonstrates how "legal" practices can still violate consumer privacy expectations.

References