JP Morgan, under the Chase brand, plans to launch a digital retail bank in the UK next week.
The US banking group begins by providing current account and compensation programs to UK consumers and then expands to other areas such as loans and investments.
First announced in January, the move is JP Morgan’s first experiment with retail banking outside the United States. If successful, the company will consider expanding the brand to other countries.
In the United States, Chase is a high street bank with over 5,000 stores and 17,000 automated teller machines. However, the incarnation of Britain will be digital only.
Details of potential customers will be announced next week when the bank officially launches.
Earlier this year, JP Morgan acquired the UK digital investment app Nutmeg. This was seen as the starting point for the planned launch of its own digital bank, which provided Wall Street’s solid customer base and the local knowledge of Nutmeg’s staff.
With its launch in the UK, Chase will be competing with both High Street Bank and Digital Bank, as well as JP Morgan’s rival Goldman Sachs, which operates the digital savings brand Marcus.
According to the new venture, it robbed local fintech companies and banks of talent. Financial NewNSReports that 500 of Chase’s UK staff are new employees and 100 have been transferred to JP Morgan.
It will be led by Sanoke Biswanasan, who previously played several roles at JP Morgan, including Chief Administrative Officer of Corporate and Investment Banking, and oversaw technology, operations, data and analytics. He started his career at the consulting firm McKinsey.
“This is a huge strategic commitment from a company perspective,” Viswanathan said in an interview. Financial Times.. “We spend hundreds of millions of dollars before we reach the break-even point and where this is a sustainable business. We are not in a hurry.”
He added that he is at the table as further acquisitions like Nutmeg expand.
JPMorgan, like its peers on Wall Street, has so far withheld cash releases so far this year in case it needs to survive the effects of the Covid-19 pandemic due to a surge in new stock listings. Profit is skyrocketing inside. ..