JPMorgan Chase (JPM) has announced its intention to launch a digital consumer bank in the UK later this year as it aims to capture some of the millions of customers that have switched from high street branches to online services during the COVID-19 pandemic.
The new consumer-facing retail bank will use the Chase brand and be headquartered in London with a contact centre in Edinburgh, the company said.
The business has already created over 400 jobs in the UK and is planning additional hires as the business grows.
JPMorgan intends to offer a range of products, delivered via an innovative mobile app, starting with a new take on current accounts.
It also plans to release a full slate of products later on, potentially including credit cards, mortgages and auto loans.
“We are bringing Chase to the UK because we want to provide customers with a new banking choice — one that will enable them to benefit from a simple and exceptional banking experience, built on the significant capabilities of JPMorgan Chase,” Gordon Smith, chief executive of consumer and community banking and co-president of JPMorgan Chase said.
“The UK has a vibrant and highly competitive consumer banking marketplace, which is why we’ve designed the bank from scratch to specifically meet the needs of customers here.”
A British-based subsidiary of JPMorgan has been licensed to operate the business, and its activities are regulated by both the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
The UK is already home to a number of rival consumer-facing banks, including Monzo and Starling, which started up as alternatives to traditional lenders.
Daniel Pinto, JPMorgan Chase’s London-based co-president, said: “This new endeavour underscores our commitment to a country where we have deep roots, thousands of employees and offices established for over 160 years.”
In August it was reported that JPMorgan appointed suppliers to provide cloud and digital banking infrastructure, including Amazon Web Services and 10x Future Technologies.
Chase is one of the largest consumer banks in the United States serving nearly half of the country’s households, including 55 million digitally active customers.
It currently offers a broad range of consumer banking products in America and holds several number-one positions including in deposit taking, digital banking and credit card issuance.
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