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JP Morgan Chase launches digital bank in Britain

A new digital bank brand offering cashback and money management features has been launched in Britain by JP Morgan Chase.

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A new digital bank brand offering cashback and money management features has been launched in Britain by JP Morgan Chase.

The Chase brand already provided a range of financial services to more than 60 million households in the U.S.

Among its British offerings will be a “numberless” debit card made from recycled plastic.

The card details are stored behind a secure login on the Chase app, so customers do not put their account details at risk if they lose their physical card.

Chase will offer a fee-free current account combining money management features with cashback rewards on everyday debit card spending.

The features include small change round-ups on which people can earn five per cent interest for 12 months.

Customers’ spending on debit cards will be rounded up to the nearest pound, and the small change will be deposited into a separate account where it will earn interest at five per cent for 12 months.

The current account’s rewards programme  also offers one per cent cashback on eligible debit card spending for 12 months for groceries, travel, meals, entertainment and others.

The others are: fashion, home ware and electronics, as well as flights and holidays, subject to terms and conditions.

People will receive the cashback rewards without having to switch their banking provider, commit to a minimum account balance or set up direct debits, according to Chase.

Chase added that there would be a 24-hour daily, seven days a week, British-led customer support team.

It said that the future products in the pipeline would  include savings and investment accounts and lending products.

The Chief Executive Officer of the bank, Sanoke Viswanathan, said: “We are offering people in the UK the opportunity to experience Chase for the first time with a current account that is based on simplicity, a fuss-free rewards programme and exceptional customer service.’’

Laura Suter, Head of Personal Finance at AJ Bell, said: “First impressions are that this new account will blow the competition out of the water, with an attractive cashback deal and a market-beating interest rate on its savings feature.

“The one per-cent cashback is better than rivals as it is on spending rather than just certain bills or direct debits; it also doesn’t require a minimum monthly deposit or come with a fee.

“A cash round-up feature has become fairly commonplace with banks now, and it means each transaction is rounded up to the nearest pound, with the difference siphoned off into a savings account.

“ The fact that Chase is paying five per cent interest on its round-up savings makes it very attractive,’’ she said.

According to her, there will be some drawbacks for the account for some customers, as it doesn’t have any bank branches.

All the help and customer support is online or on the phone, and it must be run from an app.

Some people might be wary of the name as its new to the UK market, although it has a long history in the U.S. (dpa/NAN)

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