(CNBC) JPMorgan will launch a digital bank in the UK next week, taking on major local lenders that include Barclays, HSBC, Lloyds, and NatWest.
The launch of the digital bank will also rival startups such as Starling and Monzo. The US banking giant will also counter Goldman Sachs Marcus digital bank product that was established in the UK in 2018.
The digital bank, Chase brand, will offer its services via a mobile app. The bank will initially provide checking accounts, alongside a rewards program. There are plans to expand offerings to include personal loans, mortgages, and investments.
JPMorgan’s CEO of international consumer division Sanoke Viswanathan says expansion in the UK forms a “very big strategic commitment.” He has pledged hundreds of millions of investments in the bank until it gets to a break-even point.
JPMorgan’s expansion in the UK is seen as an attempt to thwart the threat of fintech such as Square and PayPal. The bank agreed to acquire online wealth firm Nutmeg in June as part of the plans, and is seeking to buy a majority holding in the online payment’s unit of Volkswagen.
The digital bank marks the first of JPMorgan’s consumer bank brand global expansion in its 222 years of operation. The launch in the UK ends speculations after it unveiled the plans earlier in the year.
JPM: NYSE is up +0.11%.
