JPMorgan Chase (NYSE:JPM) is forging ahead with expansion of its U.K. digital retail bank despite losses at the fledgling business and skepticism by some JPM shareholders.
Sanjiv Somani, U.K. chief executive of Chase, told Reuters that the unit is planning to double the size of its workforce to at least 2,000 within two years. The U.K. mobile app bank, which launched last September, now has 1M customers and more than GBP 10B ($10.8B) of deposits.
The venture serves to act as Wall Street giant's entry into international retail banking. "We want to be international, starting with the U.K.," Somani said. "You have to look at a 10-year view. If you look at anything shorter it will not lead to the right conclusion."
The plans for expansion come as inflation is soaring in the U.K. and as the British pound takes a beating after the new government proposed cutting taxes and boosting spending.
(On Wednesday, the Bank of England stepped in to buy long-dated debt and the pound remained under pressure.)
The U.K. Chase also seeks to broaden its product range beyond current and savings accounts by introducing lending products, possibly a credit card, by the end of 2023, he told Reuters. JPMorgan (JPM) may also integrate its investment business Nutmeg, which it acquired for ~ GBP 700M last year, into the unit by the end of next year, he said.