Covid-19 Impact on Banks, And fixes. The Black Swan Opportunity

Download Now

The Black Swan Opportunity |Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

IBS Journal: The iconic monthly FinTech magazine

April 2020 issue out now! Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

JPMorgan Chase to enter the UK’s digital-banking segment: reports

American multinational investment bank and financial services company JPMorgan Chase & Co. is planning to enter the UK’s digital banking space in the next few months, according to a Sky News report.

The media firm, citing unidentified sources, said that JPMorgan Chase, the sixth-largest bank in the world by assets of $2.6 trillion, is looking to enter the UK’s digital consumer-banking market that is already has witnessed a huge spurt of FinTechs such as Monzo, Revolut, Atom Bank and Starling Bank among others that have an edge over the traditional banks. JPMorgan is planning to offer a range of banking products including savings and loans, to the tech-savvy consumers this year after receiving necessary approvals.

According to another report by Bloomberg, JPMorgan has declined to comment on the development. In another report by the news agency, JPMorgan has stressed that it is broadening its perspective on blockchain technology to show how digital money will change the financial world. “The emergence of linked databases like the blockchains that enable Bitcoin and Ether to exist as well as changing consumer preferences have turned the modernization of payments into a global theme,” the New York-based bank said in a 74-page report Friday. JPMorgan created a digital coin debuted last year to allow the bank to facilitate cross-border payments with a digital asset.

JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and is ranked by S&P Global as the largest bank in the United States.

With its digital banking strategy, JPMorgan Chase is likely to pit itself against Goldman Sachs Group that had launched Marcus, a digital-bank, in the UK market in 2018.

Lately, the UK has become the hot-bed for mobile-only banking services as they attract customers with their modern designs, flexibility, better UI/UX, customized products, and lower fees than the traditional banks. The growth of digital banks is also coming from new-age customers,  small businesses and freelancers.

A recent study by research firm Capterra stated that 90% of small businesses and freelancers in the U.K. at the present are considering to switch to a digital bank from their current traditional bank. It also said that 23% of respondents had a digital bank as their primary account, 77% of the remaining respondents that used traditional banks would consider switching to a digital bank.

Related Posts