Chase introduced quite a few buzz worthy new credit cards this year. The Chase Sapphire Reserve card came with a monster 100,000-point sign-up incentive, and bonus categories are stronger than competitors. On the Business card front, the Chase Ink Preferred launched with a 80,000-point sign-up bonus, and 3x on new categories like travel and communications.
JPMorgan released its earnings for Q3 of 2016 last month, and the Sapphire Reserve got a mention in the press release. CEO Jamie Dimon said at the time:
In the Consumer businesses, we grew both loans and deposits double-digits, and our new card product, Sapphire Reserve, has gotten a great response – underscoring our unwavering commitment to enhancing customer engagement.
During an investor conference at Goldman Sachs this morning (the full 30-minute audio here), Dimon was asked why he thinks the card has been successful as it was, and what kind of customer the card has acquired. This was his response (emphasis mine).
The Sapphire Reserve…before we had even any marketing, that thing just took off. It has a very attractive reward proposition, and it was aimed at super-prime, very high FICOs, high spenders…and older [customers]…but surprisingly [we got] a lot of millennials.
The one negative…is that it will reduce our earnings by $200 – $300 million this quarter because you have to account for acquisition cost.
If you don’t have one you should get one…there’s also a private banking one. We have also come out with one…I think it’s not public yet so I can’t say it. We have some more good cards coming out.
This is definitely exciting news, though I have to wonder what niche they will be trying to fill with the new card. Chase has been pretty aggressive and successful in the credit card business, and I think they are trying to position themselves as a clear leader in the field.
Now, whether you can actually get the card when it comes out is an entirely different story…