JPMorgan Taps Private Credit to Boost Card Business

JPMorgan Chase is exploring an innovative approach to expanding its card business without increasing credit risk. The banking giant has reportedly approached private credit firms, including Blackstone and KKR, about collaborating on a 'second-look' model.

This model would allow select applicants rejected under JPMorgan's underwriting standards to receive funding from these firms. This could expand approval rates for its co-brand card portfolio while limiting the bank's exposure to higher-risk borrowers.

JPMorgan has no immediate plans to launch the program, but it offers a potential incremental avenue for card growth and franchise expansion. The concept is particularly relevant as JPMorgan continues to expand its card business, with its pending acquisition of Apple Card and existing partnerships with co-brand partners like United Airlines.