JPMorgan Chase is set to launch its UK digital challenger which includes a range of savings and loan products under its Chase brand in the UK in the first quarter of 2021, Sky News reports.
The Wall Street stalwart has reportedly named Clive Adamson, who is former head of supervision at the City watchdog and a non-executive director at JPMorgan Securities, to lead the new business.
Earlier this year, the world’s largest lender by market cap was reportedly on the verge of closing on to make an entry in UK’s retail banking sector. Since February, has been in discussion with the FCA and other regulators to get the necessary go aheads and approvals to launch a digital bank.
Sources told Sky News the bank will be likely signing up Amazon Web Services and to provide it with cloud and digital banking infrastructure.
The launch could spur a shake up in competition and prices among incumbent lenders, including with its rival Goldman Sachs which 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 likely to target a broader audience though it’s not clear whether it will also tap the UK mortgage market.
Marcus, however, was slowing growth of its UK online-only bank after deposits surged near to regulatory limits which would require stricter regulations.
New York-based claims consumers can open an account online under 5 minutes and has over 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 into a tough market for challengers in the UK.
America’s biggest bank previous attempt at offering digital-only banking was short lived, with its Finn brand lasting merely a year after launching it in the US in June 2018