The trend of all-digital banking by mainstream companies continues as JPMorgan will be opening a digital bank in the United Kingdom, CNBC reported.
The company is launching its Chase brand in the UK, but only with a mobile app, not physical branches, the story said. It's the first expansion of JPMorgan's consumer bank brand in the 222-history of the company, according to CNBC.
Rival Goldman Sachs launched its Marcus digital banking product in the UK in 2018, CNBC reported.
JPMorgan will invests hundreds of millions of dollars in the venture before breaking even, Sanoke Viswanathan, CEO of JPMorgan’s international consumer division, told the Financial Times. He called the move a “very big strategic commitment.”
It will position JPMorgan to compete with traditional British banks including HSBC, Barclays, Lloyds and NatWest, and start-ups like Monzo and Starling, CNBC reported.
Digital banks in the UK have attracted millions of customers, the story said. One startup, Revolut, has more than 15 million customers and is valued at $33 billion, CNBC said.
JPMorgan agreed in June to acquire online wealth manager Nutmeg and OpenInvest, an investment platform based in San Francisco, the story said. JPMorgan also recently bought a stake in Volkswagen’s online payments unit.