According to CEO Jamie Dimon, JPMorgan will expand its online bank Chase to Germany and other EU nations. This move would raise competition for European rivals in a congested sector.
Although Reuters has reported that the move is being prepared for, the CEO’s remarks to Handelsblatt, which were published on Friday, represent the first official confirmation.
JPMorgan joined the British market in 2021 as its first such venture outside of the United States with a digital-only retail service, and executives have indicated their intention to expand this to other nations.
Dimon was cited as saying, “It has always been clear to us that we want to introduce Chase not only in the UK, but also in Germany and other European countries.” “Our plans are ambitious.”
He claimed that the timing was uncertain. The report was confirmed by a JPMorgan spokeswoman, who declined to comment on the timing.
Although they face a cutthroat consumer market controlled by local incumbents where margins are narrow, U.S. banks have been attempting to offset high but occasionally erratic returns in investment banking with steadier income.
In recent years, JP Morgan has grown to be one of the largest advising banks in Germany, with its European Union center located in Frankfurt. JPMorgan is now expanding to focus more on the medium-sized businesses that support Europe’s largest economy.
While JPMorgan seemed likely to extend its retail business into the EU last year, Deutsche Bank analysts questioned in a note, “Why does it make sense to expand retail banking globally when other banks haven’t been able to do so and the global regulatory burden is high?”
Dimon expressed his confidence in succeeding to Handelsblatt.
“Chase” is not yet highly known in Germany, but it is a well-known brand internationally. Private customers are aware of the fact that we are a reliable bank with a solid balance sheet,” he was reported as adding.