#DigitalBanking / Has JP Morgan Chase learnt the lessons of Finn and Bó?

JP Morgan Chase has finally broken its silence over plans to launch a consumer digital bank in the UK. Since unofficial reports first landed in August last year, the major US bank hasn’t – until now – clarified its position on the expansion.

But in an announcement on Wednesday, JP Morgan Chase said it had already hired 400 people to operate its first ever UK arm. The new operation is set to land “within months”.

Its US rival, Goldman Sachs, has already enjoyed notable success with its UK consumer brand Marcus. The bank launched more than two years ago.

In November… JP Morgan was eyeing up UK challenger Starling Bank’s two million customer base. But with Starling’s CEO, Anne Boden, refusing to sell up to a big bank. For JP Morgan Chase, this isn’t its first challenger start-up foray. In 2017, it rolled out digital bank, Finn, over in the US. But a year later, it shuttered the challenger.

A Business Insider report highlighted some of the reasons why Finn failed. One was down to that fact there wasn’t a significant difference between Finn and JP Morgan Chase’s own mobile banking app. Largely because they sat on the same backend structure.

One expert told CNBC in May that the bank failed to take off due to the “crowded nature and maturity” of the UK’s digital banking market.

Monument, which already has its UK banking licence, is looking to tap Britain’s mass affluent population this year…

Atmen, is addressing the fact no Black British-led high street or digital banks exist in the UK, despite ethnic minorities making up around 10% of the population…

Perenna, set to launch later this year once its banking licence arrives, wants to offer 30-year fixed-rate mortgages. The product isn’t currently available in the UK…

Other players include Oxbury, a licensed challenger bank for British farmers. As well as Rewire, the Israeli fintech with an Electronic Money Institution (EMI) licence which is trying to connect the UK’s 9.5 million migrants with their banks back home to improve the banking offerings open to them.

Islamic finance has also enjoyed a wealth of new entrants in the last year, including Niyah, Rizq, Kestrl, and Waqfinity…

https://www.fintechfutures.com/2021/01/has-jp-morgan-chase-learnt-the-lessons-of-finn-and-bo/