Chase Bank has more than a million UK customers now banking with it, just 12 months after it opened for business in Britain.
The digital bank, part of US giant JP Morgan, launched last September and has already had more registrations than Monzo and Starling Bank achieved in their first 12 full months combined, though it has a lot more power behind it.
Chase already serves more than 56 million digital customers in the US and its parent company, JPMorgan, manages trillions of pounds of assets.
Chasing the pack: The digital bank has secured more than 1 million UK customers since its launch last September
In Britain, Chase now has more than £10bn in customer deposits and has processed 92m card and payment transactions since its launch.
Compared to other challenger banks, customer growth to date is impressive.
Monzo Bank made 150,000 in its first year, albeit with its prepaid debit card service at the time, while the app-based Starling Bank grew from 50,000 to over 400,000 customers in its first full year.
Monzo now has more than six million customers and Starling has more than three million.
How has Chase grown so fast?
The bank has attracted customers through a variety of features that help them budget, manage money, spend and save.
In March, it launched what was then a market-leading easy-access savings account that paid 1.5 percent.
This has proven to be immensely popular. According to Chase, customers have an average of £27,000 in their Chase Saver account.
In May, it launched a referral scheme that rewarded customers £20 each time they successfully referred someone to open a Chase checking account.
Sanjiv Somani, UK CEO of Chase and Nutmeg, said he’s excited about the start it’s off to, but reiterated this was just the beginning.
Although your easy access savings deal is now enhanced by a couple dozen savings providers and your referral scheme has long since ended, you may still continue to attract customers in other ways.
Perhaps most notably, it offers a 1 percent reimbursement on expenses for the first 12 months.
This is more generous than most cash back credit cards, though only for 12 months.
It means that someone who spends £15,000 on the card in its first year could receive up to £150 in cash back.
It offers a no-fee debit card abroad, which means that its customers are not charged any fees for using their card when they travel, including for ATM cash withdrawals.
It also offers an automatic regular savings feature that allows customers to round up their spare change to the nearest pound sterling with a 5 per cent interest rate increase.
According to Chase, customers are actively using round-ups, with customers saving an average of £13 per month from the small change in their transactions.
Sanjiv Somani, UK CEO of Chase and Nutmeg, said: “We set out to offer customers good quality banking products with a simple experience through a user-friendly app, and we’re excited that consumers have responded. so positively to our offer”. in our first year.
No Number – The Chase debit card does not have a number. The bank says this means there is less risk if the physical card is lost and a new card number can be generated immediately.
What does the future hold for Chase?
Chase plans to continue to grow its UK customer base. However, to do this, you will need to continue to offer better features and benefits than other checking account providers.
Andrew Hagger, personal finance expert at MoneyComms, believes that since their savings rate is no longer as competitive, customer influx may already be slowing.
Says Hagger: ‘Chase has certainly won many accounts from the 1.5 per cent linked savings account, which was much better than anything else on the market at the time of launch.
“But 1.5 percent is pretty common now compared to the easy-access savings market, so adoption has probably slowed down.
“I don’t think Chase participates in the Checking Switch Service either, so I’m not sure how many people use it as their primary checking account instead of a secondary account with a decent savings rate.”
Over time, Chase says it intends to introduce a wide range of banking products for its UK customers.
This will include adding new features to the Chase checking account, new savings options for customers, and loan products, such as a Chase credit card.
It also recently closed the acquisition of Nutmeg, the digital wealth management platform, which will be part of an expanded investment offering for Chase clients.
Somani added: “This is just the beginning and as we expand our product offering and fully integrate the investment products offered by Nutmeg, we look forward to playing a larger role in the financial lives of our clients in the future and supporting communities to serve.’
THESE ARE THE FIVE OF THE BEST MONEY CHECKING ACCOUNTS
chase bench pay to Reimbursement of £1% on expenses for the first 12 months. Customers also get access to an easy-to-access linked savings account that pays 1.5% on balances up to £250,000. The account is completely free to set up and completely app-based. There are also no fees when using the card abroad.
The Lloyds Club account offers £150 free cash when you switch Also pays 0.6 per cent on balances up to £4,000 and 1.5 per cent on £4,000 – £5,000. Choose one reward each year from 6 movie tickets, an annual magazine subscription, 12 digital movie rentals. There is a £2 monthly account fee to pay.
Natwest Daily Bank Account pay £175 when you switch. You just need to deposit £1,250 into the account before December 16 and sign in to mobile banking.
first direct will give newcomers £175 when they switch your account. It also offers an interest-free overdraft of £250. Customers must pay at least £1,000 within three months of opening the account.
Nationwide FlexDirect account comes with Cash incentive of up to £125 for new and existing customers. Plus 5% interest up to £1,500 – the highest interest rate on any checking account – if you pay at least £1,000 each month, plus a free overdraft fee. These last two benefits last one year.
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