JPMorgan has unveiled its plans to expand its online bank Chase to Germany and other European Union (EU) countries, reported German newspaper Handelsblatt.
The US-based investment banking company said that the timing was undecided, and the move is expected to increase competition for European rivals.
Last year, Reuters reported that JPMorgan plans to hire a team of retail bankers in Germany, as part of its plans to expand its global consumer business.
In its first move to expand outside the US, the company initially entered the British market with a digital-only retail offering in 2021, signalling its aim to expand into other countries.
JPMorgan CEO Jamie Dimon told Handelsblatt: “It has always been clear to us that we want to introduce Chase not only in the UK, but also in Germany and other European countries. We have ambitious plans.”
“Why does it make sense to expand retail banking globally when other banks haven’t been able to do so, and the global regulatory burden is high?
“In Germany, ‘Chase’ is not yet so well known, but worldwide it is a strong brand. We are also a trustworthy bank with a strong balance sheet – and private customers know that.”
According to the company, US banks have been looking to offset profitable but occasionally volatile returns in investment banking with steadier revenues.
The US banks are looking to withdraw, despite competition in the consumer market, which is dominated by local incumbents, and margins are thin.
JPMorgan has made its German financial centre in Frankfurt its European Union hub.
Its financial centre has become one of the largest advisory banks in Germany, and the company expanding to target more of the medium-sized firms that form the backbone of the economy.
Earlier this year, JP Morgan acquired all the assets and certain liabilities of First Republic Bank, which suffered the impact of Silicon Valley Bank and Signature Bank collapse.
The company purchased the First Republic Bank from the Federal Deposit Insurance Corporation (FDIC), which resolves the largest US bank failure since the 2008 financial crisis.
