America’s biggest bank will be competing in a crowded market dominated by players including Lloyds Bank (LLDTF), HSBC (HSBC), NatWest and Barclays (BCS), as well as newer entrants such as Monzo, an app-based bank, and Goldman Sachs (GS), which began offering savings accounts to Brits in 2018 via its Marcus brand.
JPMorgan is hoping to lure customers with launch offers including 1% cashback on debit card spending and 5% interest on small change from purchases rounded up to the nearest £1 and set aside. Like most of its rivals, Chase won’t charge any account fees, and clients will have 24-hour access to a customer support team.
“Having spoken extensively to consumers across the [United Kingdom] we know that people want good value combined with an excellent experience, from a trusted bank,” Chase UK CEO Sanoke Viswanathan said in a statement on Tuesday.
Chase plans to offer savings and investment accounts to its UK customers in future, as well as lending products. JPMorgan said it plans to use the United Kingdom as a launchpad to expand into other international markets.
Chase is the largest consumer bank in the United States, providing financial services to more than 60 million American households. In June, it bought UK digital wealth manager Nutmeg for an undisclosed amount to complement its retail banking offering.
The bank has already hired some 500 UK staff, while a further 100 have transferred from other parts of JPMorgan.
The Chase UK launch follows rival Goldman Sachs, which has attracted billions of pounds worth of customer deposits in Britain by offering competitive interest rates. Marcus had to temporarily close to new deposits last June to avoid breaching a £25 billion ($34.2 billion) threshold that would have required Goldman Sachs to establish a separate UK-registered bank.
— Julia Horowitz contributed reporting.