JP Morgan Chase launches digital bank in UK
JP Morgan Chase has announced the launch of its digital bank in the UK which it hopes would gain enough user traction to be able to catch a large chunk of the neobank market in the UK which is getting famous within the latest generation of banking users.
Digital banks are the rage now as the latest generation of users is more comfortable transacting online and carrying out all their banking-related action online or through mobile apps rather than having to visit the branch every time. For the banks also, this presents a win-win situation as the digital banks do not need to have a huge number of branches and associated costs as well. Chase has started its operations on the digital bank by offering a fee-free current account that has inbuilt money management features along with cashback rewards as well.
Sanoke Viswanathan, CEO of the bank, said: “We’re offering people in the U.K. the opportunity to experience Chase for the first time with a current account that’s based on simplicity, a fuss-free rewards program, and exceptional customer service.”
Some special money management features are available with the digital bank including a feature to round off payments to the higher unit with the change being rotated automatically into an account that will earn annual interest. Similar features and reward programs have also been launched with the bank expected to branch out its services into lending and investments as the bank pushes to gain a large user base in the coming months. The idea behind this plan seems to be that once it completes its growth and expansion in the UK, it would continue to expand into the rest of Europe and Latin America as well as these are markets that are more conducive for digital banking as it would help the bank to reach the remote areas within these regions through digitalization.
The bank has also said that it is willing to spend millions of dollars as part of this strategic expansion to build a sustainable business and the bank is likely to take this slowly and steadily as far as growth and expansion is concerned. Digital banking is here to stay and the future is likely to be bright and so even the late entrants are likely to have a good chance for growth if they do things well.