The media reports that the digital bank, which is based in the United Kingdom and at the same time is part of the ownership structure of JPMorgan Chase, the largest financial institution in the United States by assets, presented its first credit card.

In an information material published by journalists on Tuesday, November 19, it was noted that the presentation of the mentioned product took place after the UK venture of the US banking giant was able to gain deposits worth more than 20 billion pounds ($25.3 billion) over the past three years.

Media reports say the credit card is being rolled out to 25,000 customers of the United Kingdom-based digital lender. There is also information according to which, initially, as part of a kind of pilot solution, this product was offered to the bank’s employees.

The mentioned digital lender Chase UK has been operating for three years. Currently, the number of clients of the virtual financial institution is more than 2 million. It is worth noting that this indicator is significantly lower than similar figures of other digital banks operating in the United Kingdom. For example, the number of Monzo’s customer base is about 10 million. The same number of clients is served by Revolut.

At the same time, Chase UK has the advantage of a large deposit base. Its savings offerings have drawn weather customers. The digital bank also used the Nutmeg platform to provide investment tools to clients. It is worth noting that the virtual financial institution acquired this platform three years ago.

Information about the presentation of the credit card was published two months after reports that the digital lender is testing the offer of products of the corresponding category in its mobile app in the United Kingdom.

The media also noted that JPMorgan Chase is currently making efforts to expand its retail banking network overseas. At the same time, some competitors of this financial institution, such as Citi, are decreasing the scale of their activities.

JPMorgan Chase currently hires bankers in European capitals such as Stockholm and Copenhagen. The relevant actions are part of the implementation process of the financial institution’s business expansion plan in the Scandinavian countries. Moreover, last month JPMorgan Chase chief executive officer Jamie Dimon announced the bank’s plans to scale activity in African countries such as Nigeria and Kenya.

The media notes that currently the goal of the US banking giant, which has assets worth more than $4 trillion, is to build a retail financial institution that operates only based on digital technologies and can compete with local lenders outside the United States.

Currently, the virtual segment of the global banking sector is on a trajectory of development and intensive scaling. The corresponding dynamic is what can be described as a logical part of the process of global digitalization. The results of special industry research indicate that currently in more than 10 countries around the world, approximately 47% of consumers of banking services use virtual functional solutions at least weekly.

It is worth noting that JPMorgan Chase is also expanding its brick-and-mortar banking network in the United States. As part of the relevant actions, the financial institution announced plans to open 100 branches in low-income communities. Also, before the mentioned plans, the bank announced its intention to open 500 new branches and renovate 1,700 existing locations.

It is worth noting that the competing Bank of America is taking similar measures, which also intends to scale its activities. In September, this financial institution announced its intention to open dozens of branches over the next two years. A press release published by the bank in the mentioned month contained information that almost 40 branches will be opened by the end of the current year. The lender’s global goal is to add more than 165 financial centers in 63 markets by the end of 2026. Over the past two years, Bank of America has opened more than 100 locations. Aron Levine, president of preferred banking at this bank, said in September that most customers use virtual functional solutions as part of their daily maintenance, but they visit the physical centers of this institution for face-to-face conversations about more complex financial needs and consultations.

The development of digital banking has a high level of realization intensity, but at the same time has not yet eliminated the need for traditional networks of physical presence of lenders. The results of special industry research indicate that consumers continue to visit standard branches to discuss issues related to obtaining loans as part of a personal conversation with specialists. Also, in such branches, many clients receive financial consultation. Perhaps, over time, this aspect of the interaction between consumers and banks will be fully digitized. Potentially, the implementation of the corresponding scenario can be facilitated by the active use of chatbots based on artificial intelligence, which can maintain a conversation and carry out the process of thinking within the framework of approaches to this process characteristic of human consciousness.

As we have reported earlier, JPMorgan Payments Partners With Checkbook.