JPMorgan Chase is in talks with London regulators about launching a digital bank in the UK this year, a person familiar with the discussions told the Financial Times.
Sky News reported earlier Saturday that America’s biggest bank was gearing up to launch a digital operation in the US by the end of the year.
The person confirmed that the report was accurate. The new operation, which is likely to include savings and lending products, comes two years after fellow US banking giant Goldman Sachs launched its digital bank Marcus in the UK.
Goldman’s strategy has been tempting UK consumers with high interest rates on savings accounts, which Goldman then uses to lower its group funding costs.
JPMorgan, which operates one of the biggest US retail banks, is likely to target a broader audience and could become a significant player in the UK retail banking market.
The latter’s entrance is a boost to London as international banks prepare to move swaths of their EU trading and lending operations out of the UK because of Brexit.
It is also a significant move for Chase, which has traditionally eschewed international operations in favour of pursuing its huge and profitable domestic market.
JPMorgan declined to comment. The Bank of England and Prudential Regulation Authority could not immediately be reached for comment.