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Chase digital bank launches in the UK

Chase digital bank launches in the UK

JPMorgan Chase has officially launched its UK digital bank, offering a fee-free current account that combines money management features with cashback rewards.

As trailed last week, Brits can now sign up online and then download the new Chase app, setting up an account in a few minutes.

There are various tools to help people budget, manage money, spend and save, as well as a rewards programme offering one per cent cashback on all eligible debit card spend for 12 months.

A small change round up option lets customers save as they spend by rounding up their debit card purchases to the nearest £1, and depositing the small change into a separate account where it will earn interest at five per cent for 12 months.

A UK-led customer support team means that with just a few taps in the Chase app, customers will be connected to a specialist - 24 hours a day, seven days a week.

Sanoke Viswanathan, CEO of the bank, says: “We’re offering people in the U.K. the opportunity to experience Chase for the first time with a current account that’s based on simplicity, a fuss free rewards programme and exceptional customer service.”

Chase intends to eventually expand into personal lending, investment, and even mortgages in a bid to ‘upend the UK banking market.’ Over the summer, the US giant spent a rumoured £700 million on digital wealth manager Nutmeg to bolster the launch.

Viswanathan recently told the FT that JP Morgan would invest heavily to turn Chase into a serious force in the UK before potentially expanding into other countries in Europe and Latin America.

“This is a very big strategic commitment from the firm’s standpoint,” he explained.

“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.”

Comments: (3)

Andrew Smith
Andrew Smith - RTGS & ClearBank - London 21 September, 2021, 10:042 likes 2 likes

It's good to see more competition in the marketplace, however it is crowded. I don't see anything there on offer that isn't already available from other players, like Monzo, Starling etc etc

David Gyori
David Gyori - BANKING REPORTS, LONDON - London 21 September, 2021, 16:16Be the first to give this comment the thumbs up 0 likes

Very very very exciting. This will be an important case study. I am VERY interested in their STRATEGY. How they want to win, which their KPIs are. Will they pull the plug after 4-5-6-7 years without profit? Or do they have a recipe to bring this digital subsidiary to profit earlier??? Vefry very exciting!!!!!!!!

A Finextra member
A Finextra member 22 September, 2021, 10:29Be the first to give this comment the thumbs up 0 likes

Doesn't sound like you get an awful lot after the first year!  Think I'll stick with Monzo.



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