Products

EMARKETER delivers leading-edge research to clients in a variety of forms, including full-length reports and data visualizations to equip you with actionable takeaways for better business decisions.
PRO+
New data sets, deeper insights, and flexible data visualizations.
Learn More
Reports
In-depth analysis, benchmarks and shorter spotlights on digital trends.
Learn More
Forecasts
Interactive projections with 10k+ metrics on market trends, & consumer behavior.
Learn More
Charts
Proprietary data and over 3,000 third-party sources about the most important topics.
Learn More
Industry KPIs
Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce.
Learn More
Briefings
Client-only email newsletters with analysis and takeaways from the daily news.
Learn More
Analyst Access Program
Exclusive time with the thought leaders who craft our research.
Learn More

About EMARKETER

Our goal is to unlock digital opportunities for our clients with the world’s most trusted forecasts, analysis, and benchmarks. Spanning five core coverage areas and dozens of industries, our research on digital transformation is exhaustive.
Our Story
Learn more about our mission and how EMARKETER came to be.
Learn More
Methodology
Rigorous proprietary data vetting strips biases and produces superior insights.
Learn More
Our People
Take a look into our corporate culture and view our open roles.
Join the Team
Contact Us
Speak to a member of our team to learn more about EMARKETER.
Contact Us
Newsroom
See our latest press releases, news articles or download our press kit.
Learn More
Advertising & Sponsorship Opportunities
Reach an engaged audience of decision-makers.
Learn More
Events
Browse our upcoming and past events, recent podcasts, and other featured resources.
Learn More
Podcasts
Tune in to EMARKETER's daily, weekly, and monthly podcasts.
Learn More

JPMorgan’s UK digital bank wins half a million new customers but expects heavy losses

The news: JPMorgan’s UK digital bank Chase has attracted half a million customers and $10 billion in customer deposits since its September launch.

A closer look: When Chase rolled out last year, it became JPMorgan’s first retail banking presence outside of the US. The banking heavyweight’s investor day slides reported that:

  • Chase has enabled 20 million card and payment transactions.
  • The estimated total non-interest expense per customer for digital challenger banks was two to three times less than for traditional banks.
  • But JPMorgan expected Chase to lose $450 million in 2022 and for this loss to continue at a similar level “for the next few years,” according to CEO Sanoke Viswanathan.
  • The challenger bank was projected to break even in five to six years, with “planned expansion to multiple products to offer full-service banking.”

Breaking it down: Chase’s projected losses are a drop in the ocean when compared to its parent’s huge earnings. And its performance is on par, considering it only launched in September and operates in an industry where less than 5% of neobanks break even.

However, the losses are significant, given the pressure the bank is under for its 30% hike in spending on new projects, which is mainly tech expenditure. The bank’s projections for Chase are likely an attempt to appease investors who called for more clarity regarding the rationale behind launching the digital bank.

The big takeaway: JPMorgan will persevere with Chase, buoyed by encouraging customer acquisition and backed by the vast resources of the US’s biggest bank by assets.

  • The bank has the resources to take a long-term approach to Chase’s success and withstand losses that are likely to remain the same or even widen if planned product launches go ahead.
  • JPMorgan may view the UK as a testing ground for other markets to see how its digital bank “speedboat” fares.
  • But investors may not take the same view if it stays in the red by almost half a billion each year.

Chase‘s ability to disregard the short-term performance of its bottom line sets it apart from most other digital banks in the UK. Its long-term outlook will allow it to grow naturally and widen its product line. But it still has to balance this with keeping investor concerns at bay.