JP Morgan launches digital bank in UK next week
London – JP Morgan Chase is gearing up for the long-awaited UK digital bank debut 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 UK in 2018.
New York-based JP Morgan first announced plans to launch a UK hunting brand earlier this year. JP Morgan does not create a physical branch, but serves only through the mobile app.
This shows that JP Morgan’s consumer banking brand has grown internationally for the first time in its 222-year history.
The news was originally reported by the Financial Times and later confirmed by CNBC.
Sanoke Viswanathan, CEO of JP Morgan’s international consumer division, said the expansion of UK banks is a “very big strategic commitment”.
“We’re spending hundreds of millions of dollars before we break even and this is a sustainable business, and we’re in no rush,” he told FT.
Chase initially offers a checking account as well as a rewards program. We also plan personal loans, investments and mortgages.
The UK is home to an increasingly crowded retail banking market. Favorable FinTech regulations have allowed challengers such as Monzo, Revolut and Starling, which provide checking accounts and other services through smartphones, to thrive and become a billion dollar business.
These digital banks have gained millions of customers in the meantime, but some have tried their luck by entering the US market. With over 15 million customers, Revolut is ultimately valued at $ 33 billion, making it one of the UK’s most valued 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 known for not taking on FinTech challengers at a competing digital bank called Bó.
Under the leadership of CEO Jamie Dimon, JP Morgan has sought to combat the threat from fintech stars like PayPal and Square through numerous acquisitions.
As part of its expansion into the UK, the bank agreed in June to acquire online wealth manager Nutmeg. Later in the month, we announced an agreement to purchase OpenInvest, a San Francisco-based ethical investing platform.
Earlier this month, JP Morgan announced plans to buy a controlling stake in Volkswagen’s online payments division.