JPMorgan Chase & Co. plans to launch a digital bank in Germany.
Source: Pixabay.com
The digital bank will become a platform for the American institution to further scale its financial activity in European countries. JPMorgan plans not to limit the space of providing services to European clients only to the German market.
The launch of the digital bank will take place either at the end of next year or at the beginning of 2025. JPMorgan is currently recruiting employees in Berlin as part of this project. The bank considers the German capital as a launching pad for further expansion of the scale of interaction with European clients.
JPMorgan in the format of its activities for the first time went beyond the American market at the end of 2021. Then a retail bank was opened in the UK. This institution works only in the digital space. This year, JPMorgan plans to issue credit cards from a British bank, and later launch a service to provide personal loans to customers.
The German banking market is one of the largest in the world. Most of the lenders operating in this country are not major players in the financial sector, but they mostly belong to municipalities, so there is minimal pressure to make a profit.
Foreign banks, including Barclays Plc and Goldman Sachs Group Inc., are stepping up their activities in the German market as part of efforts to increase their share in joint business with German companies and expand cooperation with individuals with significant financial resources.
JPMorgan for a long period refused to follow the course of opening branches abroad to expand the scale of international business. This decision of the bank justified itself, as appeared solution in the field of fintech, which offered a new promising format of financial activity.
Currently, JPMorgan is one of the few large American banks that is actively expanding its business internationally. For example, Citigroup sells more than a dozen retail units worldwide. Goldman Sachs Group Inc. also announced the curtailment of banking services in the UK.
As we have reported earlier, JPMorgan links blockchain payment network with Visa.
