JPMorgan Chase to open its UK neobank next week

abdelaziz Fathi

JPMorgan Chase, the biggest US bank by total assets, will next week launch its City’s digital-only bank, which offers a range of savings and loan products under its ‘Chase’ brand in the UK.

JPMorgan Chase

The Wall Street stalwart has named Sanoke Viswanathan, who was Chief Administrative Officer and Head of Strategy in the corporate and investment bank, to lead the UK digital challenger. Viswanathan told the Times and Financial Times today that JPMorgan’s first overseas retail bank would launch in the UK next week on Tuesday.

“This is a very big strategic commitment from the firm’s standpoint. 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,” he added.

JP Morgan said it rolls out the millennial-geared service to onboard “millions of customers over time”, before expanding into other countries in Europe and Latin America.

The digital bank is headquartered at Canary Wharf, London, and it has already created 400 UK jobs with more hires planned as it grows.

In 2020, the world’s largest lender by market cap was reportedly on the verge of closing to make an entry in the UK’s retail banking sector. JPMorgan, which has over $3 trillion on its balance sheet, has been in discussion with the FCA and other regulators to get the necessary confirmation and approvals to launch a digital bank.

The Chase-branded neobank signed up Amazon Web Services and 10x Future Technologies to provide them with cloud and digital banking infrastructure.

The launch could spur a shakeup in competition and prices among incumbent lenders, including with its rival Goldman Sachs that launched its retail consumer bank, Marcus in the UK in 2018.

Marcus had attracted nearly 500,000 British customers and more than $20 billion in UK deposits, but the current offering is smaller than what JP Morgan intends to launch. The new venture is likely to target a broader audience though it is not clear whether it will also tap the UK mortgage market.

However, Marcus was slowing growth of its UK online-only bank after deposits surged near to regulatory limits which would require stricter regulations.

New York-based JPMorgan claims consumers can open an account online in under 5 minutes and has more than 50 million users, but its consumer banking business has mainly operated in the US so far. JP Morgan’s UK arm is likely to offer savings and current accounts, but its open banking services and loan products will be entering a tough market against challengers in the UK.

In its previous attempt, America’s biggest bank offering for digital-only banking was short-lived, with its Finn brand lasting merely a year after launching it in the US in June 2018.

Read this next

Digital Assets

Binance joins FIDO Alliance to enhance user security with introduction of passkeys

“With passkeys, a user can quickly and safely sign in across multiple sites, apps, and devices with local biometric authorization. Binance will offer users a more secure and streamlined experience using passkeys on our platform without compromising on security”.

Digital Assets

ipaymy taps TripleA in Singapore for rent, invoices, taxes, salaries in Crypto

“Our white label crypto payment solution enables our partners to reap the benefits of accepting crypto payments, without managing crypto on their balance sheets. This makes it an ideal solution for businesses looking to offer cryptocurrency payments volatility-free.”

Industry News

London and New York rank joint first as top financial centers, according to…London

“The UK remains one of the most open and global financial centres with better access to international markets than the US, France, or Japan. But our competitive advantage is at risk.”

Interviews

Sterling Trading Tech (STT) discusses their Risk & Margin System at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Chief Customer Officer Keith Cacciola and Managing Director of Business Development Andrew Actman about STT’s competitive advantages, the challenges their clients face today, the firm’s product roadmap and new leadership at STT.

Institutional FX

Swedish online brokerage pioneer Nordnet deploys Citi Securities Lending Access platform

“Nordnet was one of the first online brokers in Sweden and has since expanded into a pan-Nordic leading digital platform for savings and investments. We are proud to add this collaborative initiative to our ever-growing list of market innovations for our customers.”

Digital Assets

Elwood integrates Fireblocks to further connect digital asset ecosystem

“As a first port of call, the integration of Fireblocks will enhance the portfolio management system experience for clients, providing users with a comprehensive view of their current and historical digital asset positions across all venues, including their Fireblocks movements and balances.”

Industry News

OKX to open office in Australia, starts rivalry with Kraken in Formula 1

“Our ambition is straightforward – to become the leading crypto platform in the world. We see Australia as an indispensable part of this strategy and a key growth market.”

Executive Moves

Freemarket taps Greg Sherwin as CTO of international payments and FX-focused fintech

“At Freemarket, we are focused on providing the best optimized cross-border payments and currency exchange service to our customers and Greg’s exceptional technology expertise will help us deliver even more for our customers and support their future growth and success.”

Digital Assets

Boerse Stuttgart Digital secures BaFin authorization for crypto custody

“This is the first time that an established market participant has been licensed to hold cryptocurrencies in custody without any acquisitions. This completes the unique infrastructure we offer: of all the traditional service providers operating in the European crypto market, we are now the only one-stop-shop that’s fully regulated by BaFin in Germany for brokerage, trading, and custody of digital assets. For banks, brokers, asset managers, and family offices, this makes us the infrastructure partner of choice.”

<