(Reuters) JPMorgan has launched the digital bank Chase in the UK as part of its expansion plans and move to counter the growing influence of fintech.
JPMorgan is now expected to exert pressure on British local lenders such as Barclays, Lloyds, HSBC, and NatWest. Chase will also compete with digital-only banks in the UK, such as Monzo.
JPMorgan is expected to use the UK pilot in its continental and global push for banking through digital channels.
The US banking giant is luring customers through 1% debit card spending cashback and 5% interest on purchases to sign up.
The launch of the digital bank marks the first of JPMorgan’s entry into retail banking outside North America. Rival Goldman Sachs launched its Marcus digital bank in the UK in 2018, offering a market-beating rate of 1.5% on savings.
JPM: NYSE is up +1.46% on premarket.
