JPMorgan Chase, the largest bank in the US and sixth-largest in the world in terms of assets, is planning to launch a UK challenger bank in the first quarter of 2021, Sky News recently reported. The media outlet revealed that the launch is considered a “move” to enable JPMorgan to capitalize on the transition of bank customers’ acceleration from branch-based activity to digital services during the COVID-19 pandemic.
Sky News further revealed that JPMorgan has signed up suppliers, including Amazon Web Services and 10x Future Technologies, a venture set up by former Barclays chief Antony Jenkins, to provide it with cloud and digital banking infrastructure.
The news of JPMorgan’s upcoming challenger bank comes almost a month after the banking group reportedly acquired a minority stake in FitBank, a Brazilian Fintech firm. As previously reported, FitBank claims it’s one of the largest open banking platforms in Brazil. It offers a white-label solution, which allows financial service providers to handle bill payments, manage their online treasuries, take care of routine financial management tasks, process transfers, and manage escrow services.
In statements shared with Citywire, Renata Vilanova Lobo, Head of Wholesale payments of Brazil at JPMorgan, shared:
“The strategic investment in FitBank is an important addition to sustaining and growing our leadership in wholesale payments within Latin America. Our clients, both local corporates and international MNCs, are looking to JP Morgan to help simplify digital payments in the region and provide them access to the various new payment types unique to Latin America.”
The amount paid by the bank for the part acquisition hasn’t been disclosed publicly.