American banking major JPMorgan Chase is reportedly planning to launch a digital-only retail bank in the UK as part of its internal expansion strategy.
This will be the first time JPMorgan will expand its consumer banking business beyond the US borders, Bloomberg reported.
The digital retail bank project in the UK has been code-named as “Dynamo”.
The project is spearheaded by former JPMorgan chief administrative officer and head of corporate and investment bank strategy, Sanoke Viswanathan.
The bank has recruited 400 engineers and customer-service representatives in the UK, with plans to hire more, the report added.
At the outset, the lender will offer a checking account – delivered with a mobile app – to its customers in the UK. Then, it will offer its full suite of banking products.
This includes credit cards, mortgages and auto loans, the reported added citing people familiar with the matter.
In a statement planned for release, JPMorgan co-president of consumer and community banking Gordon Smith said: “We want to provide customers with a new banking choice – one that will enable them to benefit from a simple and exceptional banking experience, built on the significant capabilities of JPMorgan Chase.”
For over 160 years, JPMorgan has a presence in the UK, employing nearly 19,000 people across its corporate and investment bank, and asset and wealth-management business.
Its latest plan comes several months after JPMorgan said it was finalising plans to launch the Chase-branded digital bank in the UK in early 2021.
In November, the banking giant also expressed its interest in buying the British challenger Starling Bank.
In the US, JPMorgan serves 50% of US households by offering them Bottom of Form
deposit accounts, credit cards, home loans and auto lending.
JPMorgan said that with its consumer banking foray into the UK, it will offer tailored products and features to meet the customer demands.
If successful, the bank may expand its retail business into other countries as well.