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JP Morgan eyes launching UK challenger bank – reports

Paloma Kubiak
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Paloma Kubiak

US banking giant JP Morgan is gearing up to launch a digital challenger bank in the UK, reports suggest.

JP Morgan is set to launch a range of savings and loan products under its Chase brand, sources revealed to Sky News.

They claimed that JP Morgan Chase – the world’s biggest lender by market cap – has been in discussions with City and banking regulators about securing the necessary approvals for the launch.

A new service is purported to launch later this year.

And with an average deposit base of $708bn (£540bn), it could well be equipped to offer a market-leading deal for UK savers, echoing the move by Goldman Sachs.

In September 2018, Marcus, the retail banking arm of Goldman Sachs, launched a market-leading easy access account paying 1.5%. At the time, it was the highest rate seen in two years.

UK savers flocked to open the account by the relatively unknown Marcus brand, with 50,000 accounts opened in just two weeks.

As well as giving UK consumers a much-awaited boost to their savings, it also triggered a rate war with the Nottingham Building Society pipping it to the top of the best buy table with a 1.55% offering, which has since been withdrawn.

A JP Morgan Chase spokesperson declined to comment on the reports.