JPMorgan brings digital brand ‘Chase’ to UK retail banking
While digital-only challenger banks are often associated with enhanced levels of service and a better overall customer experience, they are similarly criticised for poor financial stability and untrustworthiness by dint of being new. Chase has been designed to retain the benefits of a digital bank while countenancing the drawbacks via JPMorgan’s established name.
The company has stated that its offering will be delivered through an innovative mobile app and specifically tailored to the UK market.
The UK: A vibrant and competitive market
Headquartered in Canary Wharf, London, and supported by a customer service centre in Edinburgh, Chase’s launch has reportedly created 400 new jobs.
Gordon Smith, CEO of Consumer & Community Banking and co-President of JPMorgan Chase, explained the development by calling the UK a “vibrant and highly competitive consumer banking marketplace.”
The decision to create a digital bank resulted from research into which areas of customers’ lives JPMorgan could have the greatest impact. With domestic challenger banks like , and capturing the imaginations of British consumers, Chase saw an opportunity for incumbent banking to overtake the newcomers.
“We are bringing Chase to the UK because we want to provide customers with a new banking choice – one that will enable them to benefit from a simple and exceptional banking experience, built on the significant capabilities of JPMorgan Chase,” added Smith.
Are incumbents gaining an advantage?
Last week, it was that Monzo’s founder Tom Blomfield was departing from the company. This blow to the company was compounded by analysis from GlobalData, which indicated that the digital bank’s annual loss of revenue was unsustainable.
Although Monzo still remains highly popular with consumers in the UK, the spectre of Australia’s now-defunct Xinja Bank looms as a grim portent to those who do not address flaws in their revenue-generation activities.
Whether JPMorgan’s actions represent the established industry smelling blood or simply an effort to diversify remains to be seen. However, there is no denying that the bank’s long history combined with a well-designed digital experience could be a powerful combination.
“Our decision to launch a digital retail bank in the U.K. is a milestone, introducing British consumers to our retail products for the first time,” commented Daniel Pinto, JPMorgan Chase’s London-based co-President.
“This new endeavour underscores our commitment to a country where we have deep roots, thousands of employees and offices established for over 160 years.”
TrueLayer launches new verification API
TrueLayer, the leading, London-based open banking solution fintech, has announced the launch of its new Open Banking API verification solution.
According to reports, the technology combines open banking with machine learning (ML) to make the onboarding process seamless and fast.
Fast processing in Open Banking
Results show its success rate is currently 20% higher than credit bureaus because it generates reports in seconds rather than the traditional manual, bank statement checks that can take days to complete.
TrueLayer also says the technology simplifies the payment setup and transactions by pre-verifying customer’s details.
Another advantage is that existing providers have access to raw data that requires businesses to build and maintain their own logic to verify that the customer’s name matches their name on file at the bank.
The verification logic sits on top of open banking rails and matches the name given via the onboarding, along with the name held at the bank. It, therefore, offers a single feed that provides an immediate and highly accurate response regarding whether their user’s account has been verified.
Open Banking in the UK
Open Banking has seen a surge in popularity since March 2020. Data shows that the technology is being used 12-fold more than it was two years ago. Banks in the UK are now handling more open banking payments volume in a single month than the amounts measured in the whole of 2019.
TrueLayer says many of its clients are using the Verification API, including Authologic, a Y Combinator-backed provider of identity verification solutions.
Ossama Soliman, Chief Product Officer at TrueLayer, said the verification breakthrough makes a huge difference to both businesses and customers because verification is the first step to onboarding a new user and yet it can often take days to verify an account owner using traditional methods.
He explained, “Their security is questionable, they’re prone to errors and they take forever. It doesn’t need to be that way. With the verification API, we’ve built on top of open banking to create a faster, more secure, and more accurate approach to verifying a user’s account. It serves businesses across multiple industries, including financial services, PSPs, wealth management and trading, marketplaces, property, and iGaming.”
Speaking about the new technology, Jarek Sygitowicz, co-founder of Authologic explained, “Whether you are a fintech, a marketplace, or an ecommerce platform you want to deliver the best possible onboarding experience.
He added; “We are aggregating different identity verification methods and we are big supporters of using open banking thanks to its ability to make the entire process more intuitive.”
The TrueLayer verification API delivers:
• A faster onboarding process, cutting time from three days to three clicks.
• The API coverage spans all major banks, resulting in a 22.5% higher success rate compared to other credit check methods.
• Prevents fraud through its embedded strong customer authentication (SCA) within the bank verification process.
• Offers a better user experience for customers using biometric technology to confirm identity and ownership.
• Lowers payment failures through its pre-verified account details.
• Lowers burden on compliance teams through automated verification via a single API call.
• Lowers maintenance issues because engineers can focus on solving core business problems, rather than building and maintaining name-check logic.
Image credit: TrueLayer offices from TrueLayer