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Chase UK could start becoming profitable as soon as next year, as the bank is striving to be a “major player” in Britain as people hunt for better returns on their savings.
The digital bank, owned by US giant JP Morgan, has amassed more than two million customers since launching in Britain in 2021 and manages around £15 billion in deposits.
Managing director Shaun Port told the PA news agency that the UK spin-off is growing quickly and couldbegin to be profitable from 2025.
It comes after JP Morgan’s president Daniel Pinto revealed in November that he expects the UK consumer bank to break even in the next 12 to 18 months, at least two years earlier than previously expected.
We've been building the bank rapidly, so we believe that we can bring the UK business to profitability in 2025
Shaun Port, Chase UK's managing director
JP Morgan had warned that losses from the UK digital bank would be about 450 million US dollars (£352 million) in 2022, and estimated a similar amount for the following years until it begins to generate an income.
Mr Port told PA: “We’ve been building the bank rapidly, so we believe that we can bring the UK business to profitability in 2025.
“We want to be a major player in the UK banking scene, and to do that, we obviously need to make banking with Chase compelling.”
Starting the UK bank from scratch has allowed it to be technology-led and save on costs associated with running legacy systems and manual processes, he said.
Chase continues to be “efficient” and “careful on costs” as it hopes to swing the loss-making business to profit.
Furthermore, Mr Port said the bank has made a concerted effort to tell customers when it is changing its savings rates, usually on the day that the Bank of England has announced it is hiking interest rates.
This communication has “built trust” in the bank, which currently offers 4.1% interest on its saver account, he said.
It comes as consumers see building their savings as a top financial goal for 2024, with 30% of people saying so, according to a survey conducted by Chase.
Mr Port said there is a “clear desire to be more resilient” among customers, with people more actively managing their finances, including by transferring their monthly salary into accounts with higher interestand then moving money out to cover major bills.
The banking sector is in good health, but people can do more to earn more from their money, rather than just leave it with their existing provider and getting very little on their savings
Shaun Port
“The banking sector is in good health, but people can do more to earn more from their money, rather than just leave it with their existing provider and getting very little on their savings,” he said.
Nearly a fifth of consumers see paying off debts as a top goal, while 18% are focusing on building an emergency fund, according to the same research.
Meanwhile, Chase UK is set to offer credit cards this year as it looks to further expand its consumer products.
“That’s going to broaden our offer because having a credit card is really important to our customers; we have a lot of people asking when we’re going to launch, so we’re looking forward to getting it out there,” Mr Port said.
It is also set to grow beyond the UK and the US and has been building a team in Berlin, amid reports it is planning to launch in Germany and other European Union countries.
The digital bank, owned by US giant JP Morgan, has amassed more than two million customers since launching in Britain in 2021 and manages around £15 billion in deposits. Managing director Shaun Port told the PA news agency that the UK spin-off is growing quickly and could begin to be profitable from 2025.
Is Chase safe? Chase is regulated by the Financial Conduct Authority (FCA) and customer deposits of up to £85,000 (£170,000 for joint accounts) are protected under the Financial Services Compensation Scheme (FSCS). This means, if Chase went out of business, the FSCS would step in to cover up to this threshold.
We know a little extra cash is always welcome. That's why we give you 1% cashback on your everyday debit card and contactless spending for your first 12 months with us. 18+, UK residents.
Chase* is a digital bank owned by US banking giant J.P. Morgan. It launched in the UK in September 2021 and offers fee-free banking via its mobile app. While relatively new to the UK, it operates more than 4,600 branches worldwide and has already amassed over 50 million active digital users in the US.
Although we come from the same family as Chase in the US, we at Chase in the UK are in fact a separate bank. So if you're moving to the US and want to bank with Chase, you'll need to open a new account with them.
Your eligible deposits held by a UK establishment of J.P. Morgan Europe Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.
The digital bank, owned by US giant JP Morgan, has amassed more than two million customers since launching in Britain in 2021 and manages around £15 billion in deposits.
Is Chase safe to use in the UK? What's more, Chase is covered by the Financial Services Compensation Scheme (FSCS). ² This gives you protection of up to £85,000 if anything should happen to the bank.
Chase UK is targeting profitability by 2025 as it looks to establish itself as a key player in British finance, according to the digital bank's managing director.
JP Morgan's digital challenger bank Chase UK looks set to become profitable from next year, as it seeks to be a “major player” in Britain, according to a top executive at the lender. The business manages some £15bn in deposits and has racked up more than two million customers since its launch in 2021.
The Probability of Bankruptcy of JPMorgan Chase & Co (JPM) is 2.8% . This number represents the probability that JPMorgan will face financial distress in the next 24 months given its current fundamentals and market conditions.
Banks often pursue acquisitions of competitors to cut expenses on overlapping staff, services and facilities. The savings support profits. In recent years, closing branches has often proven integral to deal-related cost-cutting.
The 10 largest banks in the U.S. are Chase, Bank of America, Wells Fargo, Citibank, U.S. Bank, PNC Bank, Goldman Sachs Bank, Truist Bank, Capital One and TD Bank. Key Takeaways: Chase is the largest bank in the country, holding over $3.38 trillion in assets.
The US bank serves over 56 million people - and there are already more than 2 million UK Chase customers. In the UK, Chase is a digital only bank, using a self-serve approach which lets customers transact through an app and desktop site.
We don't charge fees when you use your card abroad and we'll apply the current Mastercard exchange rate to any purchases you make in the local currency. Local banks may charge their own fees when you use one of their cash machines and you should make sure you understand what these are before making a withdrawal.
Launched in September 2021, Chase serves over two million U.K. customers and was recently named Best British Bank, Best Current Account Provider, and Best Savings Provider at the 2023 British Bank Awards.
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