(Bloomberg) -- JPMorgan Chase, the biggest U.S. lender, is closing more than 5% of its branches as the firm cuts costs and as more consumers use digital devices to bank.
About 300 branches will shut by the end of 2016, according to a presentation Tuesday on the New York-based companys website. JPMorgan had 5,602 branches at the end of 2014, a decline from 5,630 the prior year. It didnt specify which locations will close.
Chief Executive Officer Jamie Dimon is making the retail network less dense as consumers adopt technology, such as smartphone apps, that costs less for the bank to operate than physical locations. The number of clients who use JPMorgans mobile apps for transactions rose 20% last year to 19 million, according to the presentation.
The consumer business has cut expenses by about $3.2 billion since 2012 under a program to reduce expenses. The division aims to cut an additional $2 billion in costs by 2017, according to the presentation.
JPMorgan said last month that it reduced the number of automated teller machines by 12% in the fourth quarter. The bank joins U.S. lenders including Bank of America that are shrinking their physical footprint.
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