The news: This week, JPMorgan Chase will launch a digital-only retail bank in Germany in 2026. And Santander revealed that its US digital-only retail bank, Openbank, attracted over $6 billion in deposits in its first year.

More on this: In 2021, JPMorgan launched a digital-only retail bank in the UK—the first attempt by a US bank to start a consumer bank from scratch in another country. This set the foundation for JPMorgan’s growth in Europe: The bank also established an international consumer banking division based in London.

Spain-based Santander, which entered the US in 2010 through an acquisition, brought over the Openbank brand in 2024. It’s now starting to establish a physical presence for the digital-only bank, opening the first Openbank branch earlier this year in Florida.

The strategies: Both banks chose to focus first on gathering deposits. Openbank’s only US product is a high-yield savings account. But in Spain, it also offers checking accounts, credit cards, mortgages, and several types of insurance. Chase’s branded UK products have expanded beyond a checking account to include savings accounts and a credit card.

But the banks are using their digital banking expansion to different ends. JPMorgan has used its UK bank to test new technology from scratch, like a modern core banking platform—and to rethink the retail banking business model without considering the branch’s role. For Santander, Openbank is a way to redeploy its technology in the US based on a proven digital-only model from abroad.

Our take: For a traditional bank, running a digital-only bank is a strategic choice rather than the side project it may seem. Rebuilding the technology stack and experience from the ground up fosters necessary digital transformation and enables business growth in new markets. To break out of a mold, bankers should think big about their options: A small subsidiary built from scratch can reshape the business.