Posted on Jan 27, 2021 4:38 PMUpdated Jan 27, 2021, 5:45 PM
This is undoubtedly one of the most important launches in the bank across the Channel since the financial crisis of 2008. Following in the footsteps of Goldman Sachs, which successfully opened its online bank Marcus at the end of 2018, JP Morgan announced Wednesday the start ” in the coming months »Of a new digital retail banking service. The new app will be named after its Chase brand, which until now has focused on the United States.
If the arrival on the British market of the largest bank in the world by its market capitalization was expected, it is nonetheless a real event.
It would plan to offer a wider range of services than Marcus, and should target a wider audience. She suggests, to begin with, ” a new approach to current accounts “. It should also be present on loans, where it should position itself faster than its rival, still absent from this activity.
Recruitments at Revolut and Starling
The new JP Morgan subsidiary will be based in the Canary Wharf business district, east London, and will be supported by a customer contact platform located in Edinburgh. The project has already created 400 jobs in the country, and more are expected to follow.
According to the “Financial Times”, several engineers have been hired in particular from the neobanks Revolut, Starling, Monzo, Mettle or even Solarisbank.
For US banks, retail banking abroad has long been considered nonsense. But digital is now a game-changer.
In a British market already crowded with many neobanks such as Revolut, Starling or Monzo, and dominated by the big British banks, it makes it possible to get started at a lower cost, with a position straddling the two worlds: no branches to maintain , and therefore lower costs than traditional players (allowing a more aggressive commercial policy), but a balance sheet on which to rely and a bank status to distinguish itself from neobanks.
In this case, there are also large means: JP Morgan’s tech budget outclasses that of all its competitors, at 11.4 billion dollars per year.
At 31% in fiscal 2019, the return on equity recorded by JPMorgan Chase in retail banking in the US market remains twice as comfortable as that of the best performing banks in the UK market. Enough to finance the international growth of the American ogre. JPMorgan Chase has so far never offered its retail banking services, which account for about half of its turnover, outside of the United States.