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JPMorgan acknowledges UK digital bank rollout plan

January 28, 2021

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Launching a digital bank overseas represents a path to expansion for a bank that is limited in that regard domestically. Regulations prohibit JPMorgan from acquiring additional U.S. retail banks because it already holds more than 10% of the country’s deposits.

It wouldn’t be the first U.S. bank to create a digital footprint in the U.K. Goldman Sachs’s digital bank Marcus has attracted more than 500,000 customers in the country since it launched there in 2018. Marcus last summer had to stop taking new applications for savings accounts to keep its deposits under a £25 billion threshold. Exceeding this threshold would force Marcus, under U.K. regulations, to become a separate legal entity with its own board and limit capital sharing with the rest of Goldman.

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