JP Morgan’s digital challenger bank Chase UK is setting its sights on becoming profitable from next year, as it prepares for the introduction of credit cards and expansion into Europe.
The business manages some £15bn in deposits and has attracted more than two million customers since its launch in 2021 thanks to competitive savings rates.
JP Morgan’s president Daniel Pinto said in November that he expected the lender to break even in the next 12 to 18 months, with the firm warning that Chase’s losses could top $1bn (£785m) in 2023.
“We’ve been building the bank rapidly, so we believe that we can bring the UK business to profitability in 2025,” Chase UK’s managing director Shaun Port told PA news agency on Tuesday. “We want to be a major player in the UK banking scene, and to do that we obviously need to make banking with Chase compelling.”
Chase is winning over customers through a slick digital experience and high standards of customer care. It won accolades as best British bank, current account and savings account at the 2023 British Bank Awards. It has an App Store rating of 4.9, Google Play Store rating of 4.7, and a Trustpilot score of 4.1. In January, MoneySavingExpert readers rated Chase number one in customer service.
While other challenger banks have struggled to move into profit, Chase's deep pockets means that it can sustain hefty losses as it scales up to offer customers a more rounded portfolio of primary bank products.
Says Port: "Having a credit card is really important to our customers; we have a lot of people asking when we’re going to launch, so we’re looking forward to getting it out there.”