Benzinga | Sep 24, 2021 05:06PM EDT

JPMorgan Chase Takes Aim At Fintech's Growing Dominance With Neobank Launch

Earlier this week, JPMorgan Chase & Co (NYSE:JPM) announced its foray into neobanking with a digital bank launch in the U.K.

What Happened: With the new digital banking platform, customers can open current accounts that receive 1% cash back on purchases with issued debit cards.

"We're offering people in the U.K. the opportunity to experience Chase for the first time with a current account that's based on simplicity, a fuss-free rewards program and exceptional customer service," said Sanoke Viswanathan, JPMorgan CEO of International Consumer.

No fees will be charged for the issuance and usage of the debit card across international borders.

Why It Matters: The development comes after JPMorgan Chase chairman and CEO Jamie Dimon nodded to fintech's threat to the dominance of traditional banking institutions.

Specifically, Dimon said fintechs made great strides in building digital and physical banking solutions; "From loans to payment systems to investing, they have done a great job in developing easy-to-use, intuitive, fast and smart products."

With this new offering, JPMorgan is targeting fintech's ability to rapidly merge social media, use data smartly, and integrate with other platforms.

Photo by Tavi Ionescu from Pexels.