JPMorgan prepares to launch a digital bank in the UK

  Jpmorgan Prepares To Launch A Digital Bank İn The UK JP Morgan has recently acquired UK asset manager Nutmeg Saving and Investment Limited.   Finally, In January, the largest US bank JP Morgan Chase JPM (NYSE) $152,51 +1,40 (+%0,93) confirmed rumors that it will launch a digital consumer bank in the UK. The bank's initial service is expected to include checking account and other products such as credit cards and residential mortgages. In an effort to expand operations, it also announced plans to acquire popular UK digital asset management firm Nutmeg Saving and Investment Limited, which offers general investment accounts. These breakthroughs confirm the impression that JPMorgan takes the UK market seriously. Let's examine together whether this move works for the bank or not.

Why Does Jpmorgan Make These?

JPM is known to have tremendous earning power overall and is unlikely to run out of cash anytime soon. In addition, it is known that the Strong Bank has already done a lot in other business areas, for example, it invests heavily in Technology. The fact that it already has a 10% deposit market share prevents it from buying deposit banks in the United States. It seems obvious that the next goal of JPMorgan growth is further global expansion. It is ideal for the Bank that JP Morgan has chosen the UK as a starter. Already the goal is to offer its residents a digital application that will provide banking products and services. If the model is successful in the U.K., it could be rolled out to other countries in the near future. Interestingly, Sanoke Viswanathan, CEO of JPMorgan Chase's international consumer division, reiterated that the bank "built Chase from the ground up in the UK" following the Nutmeg acquisition.

Can JPMorgan succeed in the UK?

While banks in the UK are underdeveloped, there are many reasons why this market is attractive for a bank. Despite everything, it should not be forgotten that the United Kingdom is the sixth largest economy in the world.

A good bank to bet on

Even if the bank struggles at first, it will be a huge advantage for JPMorgan to eventually try to combine Nutmeg and its digital bank under one roof. So the chance of success is very high.  

Source: The Motley Fool

 

You may also be interested in:

 

Reasons for Tesla Stocks Rise This Week