Goldman launched its digital challenger – which offers personal loans and savings services – back in 2018. The bank had to pause savings accounts for new users in June after it experienced a deposit surge to £21b. Currently, UK lenders are struggling to deal with ultra-low interest rates. A new lender entering the market could worsen this by sparking fresh price competition, hence putting further pressure on existing players’ margins.
In the US, JP Morgan has more than 50 million digital banking customers. Its UK expansion will likely see similar offerings, including savings and current accounts, as well as consumer loan products. A Sky News source dispelled rumours that JP Morgan’s challenger will look similarly to Goldman’s Marcus. The source says the new Chase-branded service will offer a wider range of products. JP Morgan’s previous attempt at a digital challenger – called Finn – saw an early closure of the service after it experienced poor uptake from consumers.