Absolutely this. Doubt they will at first but once word of mouth slows down, they can spend big money to acquire customers for sure.
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How successful will this have to be to be seen as a success? I feel as if the numbers can be a bit lower than Starling and Monzo as this is already an established company but then I feel you would expect this to be able to get more customers because of this and because they will have more money.
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My benchmark is that if they havenât got a large enough customer base to feature in the Personal Banking Service Quality Survey (the IPSOS Mori one) within 2 years of launch then itâs failed.
Thatâs a big ask, but you canât afford to be a new entry at this stage unless you are going to make a significant and rapid impact.
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Not sure if it is hard to achieve that. Given that lots of savy people have every account out there.
Itâs not like one has to fight for exclusivity of bank account usage.
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I would say the big hurdle they have is trust. Common sense would suggest that given the size and scope of JMPC theyâd be more trustworthy than British banks, but people donât use common sense. The neobanks have found how tough it is to get people to trust them, and this hasnât been helped by the likes of Northern Rock, Halifax, Coop bank etc in â08 needing to be rescued from impending insolvency. If theyâre with one of the big 4 and theyâre vaguely comfortable it will take something pretty major to get them to move, and thatâs not to some yank character they donât know or trust, thatâs to another British name they know and understand, it would have to be something even more dramatic to get them to go to a new bank from abroad, even if you and I and anyone sensible knows the history, scope and importance of JPM.
People are weird, they may rush to it like crazy as their saviour from the UK banks, or it might die in a calamitous way having never obtained the scale they need to make it viable. Marcus did well but then savers are so desperate for interest theyâll go wherever, I donât know if current account holders are so easily swayed. We shall see.
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Very interesting analysis, I agree.
The difference between rate-chasing savers and more apathetic current account holders is probably significant, youâre right.
I do think some people will try them just out of interest, but thatâs likely to be a low number. They will need something to woo people across them, and itâs got to be more significant than a 24 hour call centre in Scotland.
I expect most of their customers will come from big banks, not other fintechs, and this is who they will be targeting (and need to target, as other fintechs arenât a big enough customer base). Practically, this will mean getting into a big marketing push and trying to tempt people who havenât tried any neobank before. It will be an uphill battle for them, but I donât think it will be impossible.
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Not sure I agree with this.
Many/Most (?) people wonât have heard of Chase in this country and US banks or JPMC donât necessarily have an unblemished record nor would they be seen as more trustworthy then British institutions
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I think that was trustworthy in a too-big-to-fail sense.
Given that a large US bank is much larger than a large British bank, some would suggest itâs even less likely to fail (and you would have full FSCS protection anyway because you bank with a U.K. subsidiary).
Iâm not sure that would track onto the logic of the average British person âin the streetâ, though. Especially if they had never heard of JP Morgan before!
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I wonder why credit cards are not working out for challenger banks.
Tandem credit card failed. Jaja - in-house product failed, and now they are kind of just servicing existing portfolio of customers they bought. Tymit is still here so far. Dunno how well they are doing.
I wonder when Revolut, Monzo, Starling will launch credit card in the UK. It will make me wanna switch to them full time.
Connected credit account is not enough.
Still gutted I didnât apply for Santander zero when it was open to application with the weird bubbles card. I hope they will bring zero back.
Or do people not care, and do all of their day to day spending with debit card?
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I do all my spending on credit cards and, actually, itâs one reason why a lot of the features of fintechs are just not that useful to me.
Maybe Chaseâs big draw feature will be a credit card, but with all the budgetary features that other fintechs have designed for debit cards?
Perhaps with some of the stuff that Simple had in the US?
I donât have Tymit but I think they are fairly decent and do offer instant notifications, which is good. I havenât really seen what their app is like though.
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Yes, that was exactly what I was suggesting, apologies if it wasnât clear. I was attempting to make the points you both made. The likelihood of it failing is probably considerably less than the British banks given its size and global importance, but exactly as you say @gt94sss2, it is exactly because Average Joe may not have heard of JPMC and if they have itâs some alien thing from way over there that I think it could be an uphill battle.
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Yeah, thatâs what I thought you were saying and I also agree with you!
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I see this kind of statement a lot in forums and genuinely wonder what the attraction is/would be of having your credit card and current account with the same provider.
I have a Nationwide current account and their Select Credit Card, and I have a Barclays current account and a Barclaycard, however, neither current account is my main account, and I was not influenced into any of the accounts by the attraction of all with the same bank.
Just curious 
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For me itâs that I need fewer apps, and I need to look in fewer places to see how my money is doing
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Sometimes you canât take out a credit card unless you also have a current account with the provider (as with Nationwide).
Also, I think a lot of people still like the idea that they can go to âtheir local branchâ if they have a problem, to get it sorted out.
This may encourage them to open a credit card with the same provider as their current account.
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Jajaâs in-house product didnât fail as such, they just saw an opportunity and had to change to take advantage of it.
There are a few things you need to be a successful credit card firm. These include:
a) Free Capital
b) A large number of active credit card users
c) being prepared to deal with the costs of Section 75 and customer queries etc.
Monzo may get b) but not a) or probably c) at the moment.
It will be easier for Revolut and Starling as they have more Capital etc.
However, I suspect they are all having to reconsider their initial plans given the impact of Covid-19 - for instance, the large increase in Section 75 claims etc.
The card has been around for years. It was originally called the Abbey Zero (Abbey also had a Zero Current Account), then rebranded to be the Santander Zero and has been taken off sale before and then brought back more then once.
However, there are now a lot of other cards which offer 0% f/x which wasnât the case when it originally launched.
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Indeed, and the Zero current account still exists (although itâs obviously not currently on sale to new customers and hasnât been for some time, it appears that legacy customers were never forced to migrate off it).
I received a letter from Santander outlining current account features the other day, which included the different overdraft rates for all their current accounts (including those not available to new customers) and the Zero one was still listed.
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My appeal of Santander Zero over a similar no-fx change NatWest credit card or Halifax clarity credit card, is that Santander has Garmin Pay 
Ditto Revolut and Starling.
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Back when I had a Lloyds account and Lloyds duo avios mastercard/amex. My wallet had an Amex, MasterCard, and Visa debit. And I felt empowered. Whenever any of the card networks had issues or were not accepted I had the other one to pay with. The fact that MasterCard and Amex were the same account was awesome as the bill was very clear. And the budget in the account was always correct and obvious, irrespective of how things were spent. (Although it did double count direct debit to pay off credit card, as spending on top of actual credit card transactions).
So yeah appeal is there. I am not sure if others integrated analytics like that before. I.e. it is extra nice what Monzo is doing with Trends. But a Monzo credit card transactions will have enhanced transaction data that is better than open banking data.
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Apart from it has been a myth a bit. I have a thing with my current account and credit card. Sort one issue âwhat else can I do? Oh no, no I canât let me transfer you to the other department & do customer identity and security againâ. Ditto mortgage. And branches seem to be a bit useless. At most they pick up the wall phone, and call the same people one could of called direct.
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