JPMorgan is planning to double the headcount of its British digital bank Chase in the next two years as it looks to guzzle up market share from the UK’s fintech lenders.
Chase, which launched in the UK 12 months ago, revealed it had passed one million customers today and now holds deposits of of over £10bn.
The digital bank’s boss Sanjiv Somani said the venture is now eyeing up expansive plans in the next two year including a roll out of the digital lending model to international markets.
“We want to be international, starting with the UK,” Sanjiv Somani, UK chief executive of Chase told Reuters.
“You have to look at a ten-year view. If you look at anything shorter it will not lead to the right conclusion … The retail banking revenue pool is in the trillions, even outside the U.S.”
Somani did not cough up details of the bank’s next launch location but Reuters reported this month that JPMorgan is hiring retail bankers in Germany ahead of a potential roll out there.
Chase is also now planning to “at least double” its 1000 strong workforce by the end of 2024, SOmani said, as it expands from current and savings accounts to lending procuts, with a credit card the most likely next product.
The bolshy expansion plans are expected to come with hefty losses over the next few years, however.
JPMorgan revealed in May it expected to lose $450m on the venture in 2022, while cumulative losses are expected to top $1bn in the years ahead. Chase is not expected to break even until 2027-2028.
The firm faces strong competition from both high street stalwarts and digital lenders in the UK however, with Monzo boasting 5.8m customers and Starling over 2.7m.
A string of banks have also failed to make forays into the UK retail market, with Citi axing its UK retail unit last week.