Chase Manhattan Corp. is revamping its consumer banking business with an eye to boosting revenues and adding customers.
Donald L. Boudreau, vice chairman and head of national consumer services, said the new structure will improve overall efficiency by letting $365 billion-asset Chase package consumer banking services more "holistically."
The moves are part of a bankwide efficiency effort begun after the company completed its 1996 merger with Chemical Banking Corp.
"I'm enthusiastic about knitting all these pieces together," Mr. Boudreau said. "It's time to bring everything together."
Mr. Boudreau said he expects double-digit growth from consumer operations this year. Consumer businesses brought in $1 billion of net income in 1997, or 30% of total profits. However, Mr. Boudreau said, there are still "efficiencies to be gained."
Bradley G. Ball, an analyst at Credit Suisse First Boston, said the bankwide restructuring could yield more than $300 million of cost savings over two years. He also said that much of the savings and subsequent revenue growth would come from the consumer bank.
Changes are also in store for the company's branch network, which could include further consolidation, the buying of single branches to fill in gaps, experiments with suburban in-store branches, or the conversion of some full-service offices to electronic branches.
"We are thinking of the branches as more of a channel for distributing products and services," Mr. Boudreau said.
Chase's retail operations already hold the leading deposit market share in the New York metropolitan region, with three million customers and $82.9 billion of deposits, or 20% of the market, according to Sheshunoff Information Services. Chase has 560 branches and 1,500 automated teller machines in the region.
In addition, Mr. Boudreau said, Chase will seek to add customers by acquiring nonbank companies, similar to its November purchase of Bank of New York Co.'s credit card portfolio.
"We don't want to bulk up just to bulk up," he said. "We can acquire customers without brick and mortar."
In December, Mr. Boudreau was given responsibility for Chase's New York, New Jersey, and Connecticut regional branch banking services and its Houston-based Chase Bank of Texas subsidiary. He continues to manage the company's various consumer finance operations, including credit cards, mortgages, and auto finance.
Mr. Boudreau said he is spending the first two months of 1998 selecting leaders for the consumer bank.
He recently gave Chase's mortgage chief, Thomas Jacob, responsibility for home equity and manufactured-home lending operations. William H. Hoefling, an executive vice president who had run home equity and manufactured housing, is now in charge of investment and insurance operations. Mr. Hoefling continues to manage auto lending, unsecured consumer finance, and student loans.
The retail bank also has a new marketing manager, John J. Stack, an executive vice president who will oversee brand positioning, product development, and communications efforts across the consumer bank. He previously managed investments and insurance.
