Do you think any other banks in America follow Chase in offering accounts in the UK?
If Chase make £50m pa profit, yes.
If Chase make £50m pa loss, no.
If Chase make between £50m pa profit and £50m pa loss, maybe
There have been foreign banks before (including other US banks) which have tried and failed in the UK consumer market before like Citibank
In many ways, Chase is behind the curve - Marcus (Goldman Sachs) has been here a few years already.
It’s funny how American banks fail in the UK and UK banks fail in the US
Chase isn’t off to a great start so far but it’s early days
Well, that isn’t a full exit. They’re going Premier-only for US retail. If you’re making enough ($5000 salary paid in each month) or you’ve got enough money ($75k) or you want a big enough mortgage ($500k) their doors are still open to you.
This is unlike RBS, which completely divested its US operation, Citizens Bank, in 2012-2013. Wouldn’t it be funny if Citizens then came around and tried to make inroads into the UK?
I wonder if Chase choose the UK to launch their first International bank because the Banking sector here is, generally, predominantly fee-free basic banking unlike most other countries.
So, they think there is a great untapped market for paying a monthly fee for better service (like Monzo+). Wasn’t that part of the issue with n26 and why they withdraw from the UK market because most people are hard to convince that they should pay a monthly charge for what they feel should be a standard banking service?
Whilst everyone complains about the ‘big four’ and those banks having such a large market share, until they move on charging people for service, it’s going to be very difficult for challenger banks to bring that in.
I suspect it’s more to do with the fact that the UK is a relatively easy market to enter for a ‘new
entrant’ in regulatory terms, we speak English, JP Morgan Chase have existing operations here.
Well that and US based executives thought that business trips to the UK would be nice (pre Covid)…
To be fair Citibank, killed there own product by starting to put stipulations on accounts and stupid fees…
I loved using Citi and then it turned to poo, and didn’t keep up…
I wish I had seen Citi’s offering!
Interestingly, it seems Citizens will be the largest acquirer of HSBC USA branches and customers.
Citi’s offering was good at the beginning, and I made use of it all whilst travelling for work.
It was multiple accounts linked to one debit card, so I had a USD account and an EUR account and a GBP main account. you logged into the website or called the automated service to switch the card to the currency you wanted (this was before the explosion in apps).
You could transfer money to them , or use the US payment / IBAN system…
You could pay cheques and cash into Lloyds / TSB branches.
You could pay in USD cheques by post or at one of the Citi Branches in London, and i did that a few times when I got refunds from hire companies in the US.
Customer service was excellent and I mean really good 24x7x365 and you spoke to either the US, UK, or India/PH
Then they screwed it up by putting deposit amounts per month and account fees, and then started to take away some of the features…
Direct debits hopefully is top or near the top of their list that needs sorting out quick