JPMorgan has planned to launch its digital retail bank, Chase, in Germany in H2 2026, expanding into Europe after its 2021 entry in the UK.
The US lender aims to offer savings accounts as its first product, as savings products are popular in the country, and gradually expand its operations to offer full banking services. Chase sees the retail banking market in Germany as significantly competitive, as digital lenders are challenging traditional players.
The retail banking landscape in Germany
JPMorgan previously announced its intentions to expand into Germany back in 2023, but failed to provide a timeline for this strategy. The bank hired approximately 100 staff in Berlin, aiming to open its headquarters by the end of 2025. Chase’s expansion further into Europe reflects its strategy to create a digital bank on the continent that will compete with local established players.
The company acknowledges the increasing demand for digital banking built on trust and global expertise. Competition in the market is increasing as established lenders such as Deutsche Bank and Commerzbank engage with smaller savings and co-operative banks and fintechs such as N26 and Trade Republic. Additionally, German customers are regarded as particularly loyal.
As traditional banks are shrinking their branch networks, digital challengers, such as Spain’s BBVA, which launched its digital services in Germany this year, continue to expand in the country.
In an attempt to expand outside of the US, JPMorgan launched Chase in the UK in 2021 to challenge incumbents such as Lloyds Bank and NatWest, gaining over 2 million customers due to competitive savings rates. The division is expected to turn a profit this year. Yet, Chase UK’s growth is repressed by laws that require banks with over GBP 35 billion in deposits to separate retail operations from riskier parts of the business. There is a possibility that the British government reconsiders an overhaul of these regulations, as they were put in place in times of crisis.
