Chase, the digital bank launched by JPMorgan, has reached one million UK customers a year after it started offering current accounts available via an app.
Chase is US investment bank JPMorgan’s response to digital-first challenger banks like Monzo and Starling, which have disrupted a banking sector long dominated by high street lenders.
Chase launched in September last year with a competitive 1% cashback deal and fee-free overseas card use. The US investment bank’s retail arm says it has processed around 92 million card and payment transactions.
To drive its growth, it has hired more than 1,000 people, with plans to more than double that number by the end of 2024.
Its rise has been swift. For comparison, Monzo has acquired 5.8 million customers since its 2015 launch, while Starling has attracted 2.7 million customers since 2014.
However, that growth has come at a cost. Earlier this year, JPMorgan said it expects losses on its overseas digital bank to exceed $1bn over the next five years.
Chase says it now holds over £10bn in UK customer deposits, with savers holding an average of £27,000.
In June last year it acquired UK digital wealth management platform Nutmeg to offer investment products to Chase customers.
“We set out to offer customers good value banking products with a straightforward experience delivered through an easy-to-use app, and we’re excited that consumers have responded so positively to our offer in our first year,” said Sanjiv Somani, UK CEO of Chase and Nutmeg.
“This is just the beginning and, as we broaden our product offering and fully integrate the investment products offered by Nutmeg, we look forward to playing a wider role in the financial lives of our customers in the future and supporting the communities we serve.”
Chase plans to replicate the model across other European markets.
Chase’s headquarters is in Canary Wharf. It is regulated by the UK’s Prudential Regulation Authority and the Financial Conduct Authority.