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.
JP Morgan’s president Daniel Pinto said in November that he expected the lender to break even in the next 12 to 18 months, with the firm warning that Chase’s losses could top $1bn (£785m) in 2023.
“We’ve been building the bank rapidly, so we believe that we can bring the UK business to profitability in 2025,” Chase UK’s managing director Shaun Port told PA news agency on Tuesday.
“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.”
While most challenger banks have failed to “cross the Rubicon” of becoming the primary bank for a large majority of customers, this is what Chase wants to achieve despite the likelihood of hefty costs.
Port said Chase UK had benefitted from being technology-led and avoiding the costs of running legacy systems.
He added that the lender has “built trust” through clear communication over when it would change its rates, with savers showing a “clear desire to be more resilient” by more actively managing their finances to take advantage of better deals and cover major bills.
A Chase survey found identified building savings as 30 per cent of customers’ top financial goal for 2024.
Nearly a fifth of customers said paying off debts was a top goal, while 18 per cent looked at building an emergency fund.
Chase UK is set to broaden its offering by introducing credit cards and expanding to Berlin. The bank is reportedly also looking at launching in other EU countries.
“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,” Port said.
