According to recent reports, JPMorgan Chase is set to focus on the launch of its online UK “challenger” bank in the first quarter of 2021. Keeping in tune with changing customer needs, especially at time during which the Covid19 pandemic has increased the use and need for digital banking services, this move will allow the company to capitalize on this growing marketplace and demand for digital banking needs.
The new digital bank is expected to be chaired by Clive Adamson, former U.K. financial regulator. JPMorgan Chase will not be the first Wall Street name to enter the UK digital banking marketplace, another Wall Street giant – Goldman Sachs launched its digital bank, Marcus, in 2018.
Although there is no final timeline to the launch of the new JPMorgan Chase challenger bank, and although JPMorgan has not officially confirmed the existence of the project, which was revealed by Sky News earlier in February this year, according to industry insiders, when it does happen, the launch will be significant for the UK consumer banking sector.
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JPMorgan’s consumer banking business operates primarily in the US, and is said to have well over 50 million digital banking customers. According to online reports, the UK expansion will likely involve various banking offerings such as savings and current accounts, as well as a range of loan products and open banking services.
When this new challenger bank by JPMorgan is launched, the UK consumer banking market will have two of the biggest names from Wall Street running operations within its market.
After closing Finn, its US mobile bank in June 2019, reports did the rounds in February this year that that JP Morgan was looking to launch a bank in the UK at some point.
The bank will be launched under the Chase brand, a household name in the US but little known in the UK consumer banking space.
Challenges Ahead
JPMorgan Chase’s new challenger bank will face competition from homegrown digital banks like Revolut, Monzo and Starling. Besides which, the launch could spark a price war amid high competition. This entry into the UK consumer banking marketplace comes at a time of depressed margins due to the Covid-19 pandemic and when new innovators in digital banking and fintech, like Monzo, are seeing a drop in valuations due to the intense market competition.
JPMorgan Chase and The UK Digital Banking market
This is the first time that JPMorgan Chase will foray into the UK digital banking market. The rumors surrounding JPMorgan Chase’s intent to launch an online banking service in the UK have been around for a few years now. JP Morgan Chase will be entering a crowded marketplace with names that are already established among households.
