The biggest bank by market value globally plans to launch a plethora of consumer services in the U.K. under the Chase brand, as reported by Sky News. JPMorgan Chase & Co. announced that it would enter the U.K. consumer-banking market within a few months.
The bank will offer multiple savings and loan products under its Chase brand. For several months now, the Wall Street behemoth has been working with regulators aiming to secure all the necessary approvals to operate in the United Kingdom’s personal banking space.
The non-executive director at JPMorgan Securities Plc and a former head of supervision at the Financial Conduct Authority, Clive Adamson, will helm this project as highlighted by the Financial Times. Up to now, JPMorgan is yet to comment on this issue.
JPMorgan would be entering a consumer-banking market that is currently in a state of flux. Fintech players like Revolut, Starling Bank Ltd. and Monzo Bank Ltd have attracted millions of clients seeking for alternatives to the traditional institutions like Barclays Plc and HSBC Holdings Plc.
This prospective launch might also put JPMorgan against Goldman Sachs Group Inc.’s online-only bank known as Marcus. Goldman Sachs launched this bank in the U.K. in September 2018. However, a City source stated that JPMorgan was planning to launch a broader range of products.
Marcus offers savings accounts, and it is expected to add more services as it increases its presence in the United Kingdom. Fierce competition in the tight U.K. banking market might already be taking its toll.
A German digital bank backed by investor Peter Thiel, N26 GmbH, announced last week that it was withdrawing from Britain after four years. Although the company blamed Brexit for its retreat, the crowded marketplace may have also played a role in its departure.
Fidor Bank, another German digital bank, also abandoned the U.K. market in 2019. JPMorgan is scheduled to host an investor day next week, where it will set out details of its growth strategy. However, it is not yet clear whether the consumer banking launch in Britain will be discussed.
The New York-based bank reported in its Q4 2019 earnings that Chase had an average deposit base of around $708bn (£540bn).