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 been named Clive Adamson, who was the 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 to make an entry in the UK’s retail banking sector. Since February, JPMorgan has been in discussion with the FCA and other regulators to get the necessary confirmation and approvals to launch a digital bank.
Sources told Sky News the bank will likely be signing 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’s not clear whether it will also tap the UK mortgage market.
However, Marcus was slowing the 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.