EDITOR NOTE: Taking a page from its financial yet non-bank digital disruptors, JP Morgan Chase is expanding into the UK via “digital banks.” In other words, it’s offering services via digital app, its first test case this year to be a checking account. Throughout 2020, JPM has been able to top analyst earnings expectations, despite its massive loan loss provisions, through trading revenue. This expansion may be a boon to the bank with regard to service and transaction fees. For the customers, the speed and convenience this may bring will not come without significant risks, especially considering that there will be no brick and mortar branches. Occasional tech disruptions, cybersecurity risks, and the potential collection of personal financial information and transactional data are always of primary concern when cash or physical presence is no longer in play. Remember, the invention of the locomotive was also the invention of its derailment. The same can be said for 100% digital banking--the invention of a fast and efficient digital bank account is also the invention of its fast and efficient disruption, theft, and disintegration.
JPMorgan Chase & Co. JPM, +1.00% said Wednesday it is launching a digital consumer bank in the U.K. in the coming months, offering services via a mobile app. The bank will be headquartered in London with a contact center in Edinburgh, Scotland. The business has already created more than 400 jobs in the U.K. with additional hires planned as the business grows. Sanoke Viswanathan has been named CEO of the digital bank, after serving as chief administrative officer and head of strategy at JP Morgan's corporate and investment bank. JPMorgan shares were down 1.4% premarket.
Originally posted on MarketWatch