JPMorgan Chase launches digital bank in the UK

JPMorgan Chase has launched a digital banking product to U.K. customers to rival challenger banks like Monzo and Starling on the one hand, and old-guard players like Goldman Sachs, Lloyds, Barclays, NatWest, and HSBC on the other.

Why should we care?
Chase is attempting to do what no U.S. bank has done before: successfully expand to the U.K. market. Chase, however, has its work cut out for itself in attempting to gain ground in a highly competitive U.K. consumer banking market, with low margins, low central bank interest rates, and a customer expectation that basic banking services should be free. “The market structure in the U.K. is such that you have to generate economies of scale. There are profits to be made, but if you are subscale or have a high-cost infrastructure, you’re not going to make it work,” Sanoke Viswanathan, CEO, international consumer at JPMorgan Chase, said. The fee-free account product for U.K. consumers will offer 1% cashback on all eligible debit card spend for 12 months, along with budgeting and saving tools.