JPMorgan Chase plans to launch a digital bank in the United Kingdom early next year, Sky News reported Friday (Aug. 21).
The move “will enable it to capitalize on the accelerating transition of millions of bank customers from branch-based activity to digital services during the COVID-19 pandemic,” the news outlet said.
JPMorgan Chase would not comment, according to the news outlet. The Financial Times and Sky News reported in February that the online bank was in the works and would focus largely on savings and lending services, but Sky News added more details with the latest report.
Although the bank has not confirmed the digital venture, the news outlet cited an “insider” as saying it could launch in early 2021.
Citing sources in the technology sector, the Sky News report said Amazon Web Services and 10x Future Technologies had signed on as major service providers for the new venture.
On its website, 10X Future Technologies describes itself as “leading a revolution with our next-generation cloud-native technology platform.” The company says is solution allows client banks to “engage their customers with more timely, relevant and personalized experiences when it comes to managing money.”
The new digital bank is expected to be chaired by former U.K. financial regulator Clive Adamson, the report said.
“When it does take place, the launch will be among the most significant new entries into the UK consumer banking sector since the 2008 financial crisis,” according to the Sky News report. “It could spark a new price war among lenders already struggling to deal with a protracted period of ultra-low interest rates, further depressing margins.”
Goldman Sachs, another Wall Street giant, launched its digital bank, Marcus, in 2018.
JPMorgan Chase traces its business roots in the United Kingdom to 1799, when The Manhattan Company was chartered. The company has offices in London, Bournemouth, Glasgow and Edinburgh.