A sign outside the Chase Bank branch in San Francisco, California, Monday, July 12, 2021.
David Paul Morris | Bloomberg | Getty Images
London — JP Morgan Chase is preparing for the long-awaited debut of a digital bank in the UK next week.
The move will allow US banking giants to acquire major UK lenders such as HSBC, Barclays, Lloyds and NatWest, as well as start-ups such as Monzo and Sterling.
JP Morgan will also strengthen its rivalry with Goldman Sachs, which launched Marcus Digital Bank products in the United Kingdom in 2018.
Newyork-based JP Morgan first announced plans to launch a chase brand in the UK earlier this year. JP Morgan does not set up a physical branch, but only serves through the mobile app.
This shows that JP Morgan’s consumer banking brand has expanded internationally for the first time in 222 years of history.
The news was initially reported by the Financial Times and later confirmed by CNBC.
Sanoke Viswanathan, CEO of JP Morgan’s International Consumer Division, said the expansion of banks in the UK is a “very big strategic commitment.”
“We spend hundreds of millions of dollars before we reach the break-even point and where this is a sustainable business, and we’re not in a hurry,” he told FT.
Chase initially offers a check account along with a rewards program. We also plan personal loans, investments and mortgages.
The UK is home to the increasingly crowded retail banking market. FinTech-friendly regulations have allowed challengers such as Monzo, Revolut, and Starling, which provide checking accounts and other services via smartphones, to thrive and become a $ 1 billion company.
These digital banks have gained millions of customers in the meantime, but some have tried their luck in entering the US market. With more than 15 million customers, Revolut is finally valued at $ 33 billion, making it one of the UK’s most valuable tech start-ups.
JP Morgan’s arrival in the UK will put more pressure on the country’s traditional lenders. A state-backed lender, NatWest is notorious for failing to take on FinTech challengers at a competing digital bank called Bó.
Under CEO Jamie Dimon, JP Morgan has sought to combat the threat of fintech stars like PayPal and Square through numerous acquisitions.
As part of its expansion in the UK, the bank agreed in June to acquire online wealth manager Nutmeg. Later that month, we announced a deal to buy OpenInvest, a San Francisco-based ethics-oriented investment platform.
Earlier this month, JP Morgan said it plans to buy a majority stake in Volkswagen’s online payments division.
JP Morgan Launches Digital Bank in UK Next Week
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