Reportedly, JPMorgan Chase & Co (JPM) is challenging British rivals with the launch of its long-awaited digital retail bank, Chase. The launch marks the entry into retail banking outside North America by one of the United States’ most dominant lenders, building pressure on British incumbents such as Barclays, Lloyds, NatWest, and HSBC which are already battling low-interest rates and upstart digital rivals. The venture, if successful, could see the U.S. bank expand into continental Europe and then globally, added Sanoke Viswanathan chief executive of the new Chase bank venture.
“We have been watching in which markets customers are really ready to do their banking primarily through digital channels, and the UK frankly leads the way in this respect,” stated Sanoke Viswanathan, chief executive of the new Chase bank venture.
The Wall Street giant will lure customers to sign up for the accounts without fee and introductory offers, including 1% cashback on debit card spending and 5% interest on small change rounded up from their purchases and set aside in a separate savings pot. The bank enters a competitive British market with extremely thin margins caused by low central bank interest rates and a tradition of free current accounts, in contrast to most global markets where customers need to pay for even basic services. The bank has already hired some 500 staff in Britain and will add more as it builds up its customer support teams, informed the chief executive of the new Chase bank venture.
JPMorgan Chase & Co (JPM) is a global financial service leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and commercial banking. To learn more about JPMorgan Chase & Co. (JPM) and to continue to track its progress please visit the Vista Partners JPMorgan Chase & Co. Coverage Page.
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