What are the prospects for Chase in the UK market
JPMorgan Financial Corporation launched Chase digital bank in Great Britain. It became the holding’s first foreign product. JPMorgan made this decision after analyzing the markets, studying the category of customers who prefer to carry out banking transactions through digital channels. It turned out that the first place in demand for such systems are users from the UK.
The launch of Chase is an important step for the U.S. financial corporation. Having strengthened its position in the segment of retail banking, JPMorgan will be able to expand its activities not only in Britain but also in Europe as a whole.
Service Chase offers users to open an account for free, which has a system of rewards. The customer gets a 1% cashback on a debit card purchase. In addition, if he saves small amounts, which are obtained by rounding up various purchases or deposited in the investcopilka, the user receives 5% per annum.
Experts note that the banking market in Great Britain is developing rapidly, and the competition here is quite serious. The segment is characterized by low interest rates, free account opening is traditional for the segment. Compared with other major markets, the latter feature is considered an excellent advantage. The fact is that in most countries customers have to pay even basic fees in services.
The main players in the British market are major operators such as HSBC, Lloyds, Barclays and others. Now JPMorgan and its product Chase will have to compete with them, as well as with the rest of the banking services, the number of which in the country is regularly growing.
The structure of the U.K. market is characterized by the ability to save money by working towards expansion. If the scale of the business is small and the structure is costly, then the company has no chance of becoming successful and recouping the investment.
JPMorgan is serious about reaching a new level for itself. Chase has hired 500 employees in the U.K., and the staff will expand in the future to meet growing needs and create new services.
It should be noted that another U.S. company, Goldman, is already banking in the country. It launched its Marcus product in 2018. Last year, the bank suspended the ability to open new savings accounts. The reason was a surge in demand for deposits during the pandemic. Now, however, the feature is available again to Britons.
For U.S. financial corporations, entering the European market is of strategic importance, given that competition here is not as fierce as in the United States. Companies are investing in creating their own services to operate in the region or investing in products that are already in operation abroad.