JPMorgan is set to take a new step towards launching a digital bank for retail customers in the UK next week. This is the first step in the US bank's plans to expand its business for individuals abroad.
The bank plans to invest hundreds of millions in the project, JPMorgan’s head of international consumer division, Sanuk Viswanathan said, we will spend hundreds of millions before we break even and get to a place where this is a sustainable business and we are in no hurry. Planning for this step took more than two years, and the bank agreed to buy UK digital wealth management firm Nutmeg Saving and Investment in June, and more acquisitions may be considered. The bank wanted to become a force in its own right in retail banking in the UK, and could eventually expand into Europe and Latin America.
The process, called Chase, will begin Tuesday with checking accounts, a source familiar with the matter told Bloomberg.
The digital bank will have around 600 employees in the UK, including 500 new ones. It is a small number for the roughly 19,000 employees of JPMorgan's current UK unit, which is focused on investment activities.
It will initially provide statements of accounts. Future personal loans, investments and mortgages are also being planned.
JPMorgan makes about 26 million transactions per day, worth between $6 and $8 trillion, according to what was published on its official website, while the bank's market capitalization is about $472.4 billion, according to Forbes.
But the UK retail banking market has been negatively affected in recent years by the rise of digital startups such as Monzo Bank Ltd and Starling Bank Ltd. Goldman Sachs brought its digital bank, Marcus, to the UK in 2018.