Subscribe to Entrepreneur for $5

JPMorgan (JPM) to Launch Digital Retail Bank Chase in Britain

JPMorgan (JPM) is ready to launch the digital retail bank under the Chase brand in Britain starting next week.

This story originally appeared on Zacks

JPMorgan JPM is finally ready to launch the digital retail bank Chase in Britain in the upcoming week. The Wall Street giant unveiled in January this year that it was planning to launch a digital bank in the U.K. in order to capitalize on the acceleration of the digital banking boom.

The new bank will be headquartered in London with a contact center in Edinburgh.

A spokesperson for JPMorgan confirmed that initially a smartphone app will be launched on Tuesday, which will offer only current accounts. Eventually, JPMorgan intends to provide savings as well as current accounts along with a wide range of banking services and loan products through the digital-only bank.

The head of JPMorgan international consumer division, Sanoke Viswanathan, stated, “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.”

Viswanathan further mentioned that they plan to expand the Chase digital bank in Europe as well as Latin America over time.

In August 2020, it was reported that JPMorgan signed agreements with partners, including Amazon Web Services and 10x Future Technologies, a FinTech firm to provide cloud and digital banking infrastructure.

Amid plans of establishing a banking presence in the U.K., JPMorgan, earlier this year, acquired British robo-adviser Nutmeg.

While expanding in the U.K., JPMorgan is expected to face tough competition in the digital banking space. Several local FinTech players like Monzo Bank Ltd. and Starling Bank Ltd. have already garnered significant market share in the region, while large traditional banks, including HSBC Holdings HSBC and Barclays BCS, are looking to expand digital offerings.

Further, Goldman SachsGS online-only bank Marcus — which began operating in the U.K. in 2018 and has more than 500,000 customers — poses a risk to JPMorgan’s expansion efforts.

Despite these hurdles, JPMorgan is expected to continue its efforts toward digitizing operations to better align with customer needs. The efforts are expected to support the company’s profitability and boost market share amid a low interest rate environment.

So far this year, shares of the company have gained 24.1% compared with 27.5% growth recorded by the industry.

- Zacks


Zacks Investment Research

Image Source: Zacks Investment Research


Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report


JPMorgan Chase & Co. (JPM): Free Stock Analysis Report


Barclays PLC (BCS): Free Stock Analysis Report


HSBC Holdings plc (HSBC): Free Stock Analysis Report


To read this article on click here.


Zacks Investment Research