American multinational investment bank JP Morgan is set to open its first digital retail bank in the UK next week called Chase. The digital-only bank will first offer accounts through a unique rewards program, before eventually expanding into lending, investment, mortgages, and more.
With the launch of 'Chase' in the UK, it is clear that JP Morgan is aiming to disrupt the British finance industry by posing a challenge to its legacy market dominators. It is rumored that the company has already invested £700 million on Nutmeg -- a digital wealth robot-advisor -- in an effort to bolster the launch of Chase.
"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" said Sanoke Viswanathan, head of JPMorgan’s international consumer division. Clearly, Viswanathan is confident that the digital-only bank, which will be released as a slick mobile app this week, will be a sure success in the UK.
Digital-Only Retail Banks
JP Morgan is Set to Launch Digital Bank 'Chase' in the UK
Trend Themes
1. Digital-only Banks - The rise of digital-only banks like JP Morgan's Chase poses a challenge to legacy market dominators and creates disruptive innovation opportunities in the financial industry.
2. Unique Rewards Programs - Digital-only banks can differentiate themselves from traditional banks by offering unique rewards programs and incentives to customers, creating opportunities for innovation in loyalty and engagement strategies.
3. Digital Wealth Advisors - Investments by traditional banks like JP Morgan in digital wealth advisor services like Nutmeg show the potential for disruptive innovation in the wealth management industry.
Industry Implications
1. Banking Industry - The launch of JP Morgan's digital-only bank 'Chase' highlights the potential for disruption in the banking industry and creates opportunities for innovation in digital banking, mobile apps, and more.
2. Financial Technology Industry - The rise of digital-only banks and investment in digital wealth advisors like Nutmeg demonstrate the potential for disruptive innovation in financial technology, mobile payments, and more.
3. Wealth Management Industry - Investment by traditional banks like JP Morgan in digital wealth advisor services like Nutmeg shows the potential for disruptive innovation in the wealth management industry through the creation of unique digital offerings and personalized services.