JPMorgan Chase is preparing to launch its strongly anticipated digital bank in the United Kingdom next week.
The move will mark the start of the top U.S. lender’s competition with key British lenders including Barclays, HSBC, Lloyds, and NatWest, as well as start-ups like Monzo and Starling.
This will also present another opportunity for JPMorgan to ramp up its competition with Goldman Sachs, which extended its Marcus digital bank offering into the United Kingdom in 2018.
The New York-based bank first announced plans to launch its Chase brand in the U.K. at the start of 2021. Contrary to the traditional model of establishing physical locations, with Chase, JPMorgan’s primary goal will be to promote its mobile app.
In its 222 years of operation, this is the first time JPMorgan is expanding its retail banking business to an international market.
Sanoke Viswanathan, CEO of JPMorgan’s international consumer division, speaking on the move, said: “We will spend hundreds of millions before we get to break-even and get to a place where this is a sustainable business, and we’re not in a rush.”
Chase will begin by offering checking accounts along with a rewards program. Other services scheduled to follow include personal loans, investments, and mortgages.
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