FinTech: JPMorgan Chase To Unveil UK Digital Bank Next Week

September 17, 2021 | FinTech, Latest News, News
https://dailyalts.com/wp-content/uploads/2021/09/512px-Jamie_Dimon_CEO_of_JPMorgan_Chase.jpg

JPMorgan Chase is launching a fully digital lender bank in the UK next week, the first overseas retail bank in its history of 222 years.

JPMorgan Chase (NYSE: JPM), the largest bank in the US, may disrupt the UK banking market with its launch next week of a digital lender retail arm offering, in the first instance, current accounts with a reward program. (FT)

A new UK bank with (very) deep pockets

JPMorgan Chase is calling the UK operation Chase (it was dubbed Project Dynamo while being developed secretly). It will invest heavily into making Chase a meaningful force in UK banking, according to Sanoke Viswanathan, head of JPMorgan’s newly formed “international consumer” division.

Speaking to the FT at Chase’s Canary Wharf HQ, Viswanathan said: “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.”

With launch restricted to current accounts, Viswanathan said regarding mortgages: “In the current conditions there is a massive oversupply of mortgages and lots of providers . . . but to be a full-service bank and have consumer trust over the long term it is an important product line.”

JPMorgan envisions that within three to four years UK customers would conduct all their banking with Chase, and “not have to bank with other people.”

Chase is looking to beat legacy banks in the UK with its branchless operating model and huge tech resources. It will get an advantage over other digital challenger banks through its regulatory strength and massive balance sheet.

Viswanathan also said the new Chase was not fixated on achieving a customers’ number count or on becoming profitable by a certain date.

“We’re committed to this country for the long term,” he told FT. “We didn’t take this decision on a whim.”

Related Story: JPMorgan Launches In-House Bitcoin Fund For Private Banking Clients

Image of Jamie Dimon, CEO of JPMorgan Chase: Wikimedia

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/10/btc-g2b55ec6dc_640.jpg
Digital Assets: Crypto Exchange FTX Rakes In $420M At $25B Valuation
October 22, 2021     Digital Assets, Latest News, Venture Capital

29-year old billionaire founder and CEO Sam Bankman-Fried is a majority owner of FTX. Just three months after closing a record $900 million Series B round, FTX, the Bahamas-headquartered crypto…

https://dailyalts.com/wp-content/uploads/2021/10/1024px-North_Dakota_Flaring_of_Gas.jpg
Digital Assets: Russian Energy Firms Seek Go-Ahead To Use Flared Gas For Mining Crypto
October 22, 2021     Digital Assets, ESG and Sustainability, News

Russia’s crypto mining industry is in expansion mode after China’s clampdown on its crypto miners. Also wanting to join the party are Russian oil and gas companies that flare, or…

https://dailyalts.com/wp-content/uploads/2021/10/archive-g1a80093d6_640.jpg
Artificial Intelligence: Rossum, The Document AI Company, Raises $100M
October 22, 2021     Artificial Intelligence, News, Venture Capital

Rossum offers an end-to-end AI document processing solution that combines its cognitive data capture platform with a full suite of integration capabilities to automate document-based communications between diverse businesses. The…

https://dailyalts.com/wp-content/uploads/2021/10/equal-gd63ae6939_640.png
Alternative Investments/ESG: New York Life Floats ETFs For Gender Equality, Clean Oceans, Cleaner Transport

The three thematic ETFs meet investor demand for ESG approaches. IndexIQ, the New York Life Investments company, announced Wednesday the launch of three new ETFs. The IQ Engender Equality ETF…