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JP Morgan Launches Digital Bank in UK Next Week

A sign outside the Chase Bank branch in San Francisco, California, Monday, July 12, 2021.

David Paul Morris | Bloomberg | Getty Images

London- JP Morgan Chase We are preparing for the long-awaited debut of a digital bank in the UK next week.

The move will force US banking giants to undertake major UK lenders. HSBC, Barclays, Lloyds When NatwestThe same is true for start-ups such as Monzo and Starling.

JP Morgan also Goldman Sachs, Launched Marcus Digital Bank products in the UK in 2018.

Newyork-based JP Morgan first announced plans to launch a chase brand in the UK earlier this year. JP Morgan does not set up a physical branch, but only serves through the mobile app.

This shows that JP Morgan’s consumer banking brand has expanded internationally for the first time in 222 years of history.

The news was first reported by Financial Times It was then confirmed by CNBC.

Sanoke Viswanathan, CEO of JP Morgan’s International Consumer Division, said the expansion of banks in the UK is a “very big strategic commitment.”

“We spend hundreds of millions of dollars before we reach the break-even point and where this is a sustainable business, and we’re not in a hurry,” he told FT.

Chase initially offers a check account along with a rewards program. We also plan personal loans, investments and mortgages.

The UK is home to the increasingly crowded retail banking market. FinTech-friendly regulations have allowed challengers such as Monzo, Revolut, and Starling, which provide checking accounts and other services via smartphones, to thrive and become a $ 1 billion company.

These digital banks have won millions of customers among them, but some have tried their luck. Entry into the US market..Revolut, which currently has more than 15 million customers The final value is $ 33 billionMakes it the UK’s most valuable tech start-up.

JP Morgan’s arrival in the UK will put more pressure on the country’s traditional lenders. A state-backed lender, NatWest is notorious for failing to take on FinTech challengers at a competing digital bank called Bó.

Under CEO Jamie Dimon, JP Morgan has sought to combat the following fintech star threats: PayPal When square Through many acquisitions.

Banks as part of efforts to expand in the UK Agreed to acquire online wealth manager Nutmeg In June.Later that month, it Announced contract to purchase OpenInvest, San Francisco-based ethics-oriented investment platform.

Earlier this month, JP Morgan said it would buy a majority stake. Volkswagen Online payment unit.

JP Morgan Launches Digital Bank in UK Next Week

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