JPMorgan is challenging British rivals on their home turf. They have launched the long-awaited digital retail bank, Chase. This is as a part of the U.S. lender global expansion. The launch marks the first foray into retail banking outside North America. There is great pressure on British incumbents such as Lloyds, Barclays, NatWest and HSBC. They are battling low interest rates and upstart digital rivals.
Sanoke Viswanathan, chief executive of the new Chase bank venture said that they have been watching in which markets customers are really ready to do their banking. And then, the UK frankly leads the way in this respect. The U.S. bank could expand into continental Europe and then also globally. He also added that this is a business that they are building not just for the UK but for the rest of the world. There is a great confluence of talent here across the different product functions.
Nic Ziegelasch, Analyst at broker Killik & Co said that JPMorgan could be a serious player in the UK retail banking space, with a strong technology platform, significant financial resources and a global brand name. The Wall Street giant enters a competitive British market. Viswanathan said that the market structure in the UK is such that you have to generate economies of scale and there are profits to be made. JPMorgan is following U.S. rival Goldman Sachs. It will also compete with digital-only banks such as Monzo. The bank has already hired 500 staff in Britain and will add more as it builds up its customer support teams.
