Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
JPMorgan is looking to enter the UK booming FinTech market. However, it will be facing tough competition from FinTech challengers like Revolut, Monzo and Starling.
America’s largest bank JPMorgan Chase is all set to put a step in the UK’s emerging digital banking market. As reported by FT times, JPMorgan is looking to launch a digital-only bank in the UK.
This will also be the bank’s first overseas retail banking expansion in its 222-year history. With this move, JPMorgan will be directly competing with British banking giants like Barclays, HSBC, Lloyds, and NatWest. It will also compete with emerging FinTech startups like Monzo and Starling.
Sanoke Viswanathan, head of the newly formed “international consumer” division at JPMorgan, said that the bank has planned massive investments in the UK market. Laster on, JPMorgan has a plan to expand to other European and Latin American markets. During his recent interview, Vishwanathan said:
“This is a very big strategic commitment from the firm’s standpoint. We will spend hundreds of millions before we get to break-even and get to a place where this is a sustainable business, and we’re not in a rush.”
In the initial phase of the launch, the company will only offer current accounts with a rewards program. As said, there will be no physical branches and JPMorgan plans to offer all its services only through a mobile application. JPMorgan said that it further plans to delve into areas of investment and personal lending, and later into mortgages.
“In the current conditions there is a massive oversupply of mortgages and lots of providers . . . but to be a full service bank and have consumer trust over the long term it is an important product line,” said Vishwanathan.
Taking on Goldman Sachs Marcus
The finTech landscape in the UK is emerging fast and many banks are already citing big opportunities year. JPMorgan has been working on its digital bank project over the last two years under the codename Project Dynamo.
This was in direct competition to Goldman Sachs‘ project Marcus launched back in 2018. The banking giant saw major incoming deposits through its savings bank services. However, Goldman hasn’t focused much on expanding its product offering. Rather it has used these deposits to fund its investment banking operations.
On the other hand, Chase wants its customers all the banking with them and not having to move to other banks. Besides big players, FinTech-friendly regulations in the UK have seen several startups coming to the limelight.
Players like Revolut, Monzo and Starling have been gaining major market share with its innovative FinTech product offerings. These startups have become billion-dollar companies with their smartphone-based banking services. Even established players like NatWest haven’t been successful in taking on these Fintech challengers.