American banking giant JPMorgan Chase is finalizing plans to launch the Chase-branded digital bank in the UK in early 2021, Sky News has reported.

The plan is part of the bank’s strategy to capitalize on the mass switch of banking customers towards digital banking channels following the outbreak of the Covid-19 pandemic.

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JPMorgan has partnered with Amazon Web Services (AWS) and 10x Future Technologies for setting up a cloud and digital banking infrastructure, the report added.

Currently, the lender operates its consumer banking business mainly in the US – where it has added over 50 million digital banking customers.

In the UK, the bank will most likely offer savings and current accounts, a suite of open banking services and loan products as well, the Sky News report added.

JPMorgan will be the second Wall Street giant to launch a consumer digital bank in the UK, following Goldman Sachs’ launch of Marcus in 2018.

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The entry of Chase brand’s entry into the UK market may trigger a new price war among the UK banks as they grapple with lower margins and bad loans due to the health crisis.

Sky News said that JPMorgan did not officially confirm its latest plans yet.

Many challenger banks in the UK are trying to raise huge funds, while some are exiting the UK market due to Brexit and other economic uncertainties.

Last week, reports emerged that neobank Atom Bank is planning to raise £150m via a share sale, while BBVA-backed fintech Holvi exited the UK market citing no-deal Brexit and Covid-19 pandemic uncertainties.

Last month, Revolut extended its Series D funding round by raising an additional $80m.

In June, Monzo closed a $76m funding round with a 40% drop in valuation, due to Bank of England’s involvement.

In February, N26 bailed out of the UK market in less than 18 months after launch, blaming Brexit.

JPMorgan, which is valued at nearly $300bn (£228bn), has already closed its online-only brand named Finn, in the UK last year, due to poor consumer response.