Intel Report Digital Banking - Flipbook - Page 3
Dear Reader,
The largest bank in the United States, the $3.4 trillion global behemoth known as
JPMorgan Chase & Co., hesitated to put a retail bank in the crowded and competitive
United Kingdom in the past.
That changed in 2021. JPMorgan Chase CEO Jamie Dimon announced a digital retail
bank with headquarters in London and a customer center in Edinburgh. But no branches.
International expansion was cost-prohibitive in the past, Dimon admitted, but the
economics of banking have changed. Even the biggest U.S. banks, which haven’t abandoned branches, know that.
“What we always said is we’re not going to do retail overseas … I can open 100
branches in Mumbai or 100 branches in the U.K., and there’s no chance I’d gain
enough share to make up for the additional overhead,” he said at a Morgan Stanley
conference in June of 2021. “Digital changes that.”
This shifting landscape means digital platforms hold a lot of promise for banks seeking
to grow profitably. This report, sponsored by Nymbus Labs, will focus on these business
models, return on investment and elements of success of digital-first banks and banking
platforms.
Of course, terms such as neobank, challenger bank and digital bank get thrown around
a lot these days. Some of the newcomers are chartered and regulated banks. Others
are offshoots of a bank. Most are financial technology companies that rely on banks to
access payment rails, compliance programs or deposit insurance. For simplicity’s sake,
we’ll call them digital banks. Whether they are banks or just call themselves a bank,
we’ll include them in this report. The goal is to reveal how they are changing the banking marketplace.
Sincerely,
Naomi Snyder
Editor-in-Chief
Bank Director
Contents
What’s Changing
2
Case Studies
12
Digital Bank and Fintech Offerings
6
Success Checklist
18
Challenges and Opportunities
8