JPMorgan plans to expand retail banking to Germany

JPMorgan will hire a team of retail bankers in Germany as it plans to expand its international consumer business and seek more stable revenue streams, Reuters wrote Monday (September 5).

The bank’s first foray outside the US was when it entered the UK market with a digital-only retail offering last year.

The leaders said they wanted to expand to other countries. JPMorgan is reviewing the success of the rollout before deciding where it will add more such activities.

In Germany, hires could be used in various places, according to unnamed sources. The bank posted a post for a “people project manager” in international consumer banking, which described a “start-up atmosphere”. The company is reportedly considering hiring a financial crime compliance officer “for international consumer expansion in Germany.”

It comes as U.S. banks seek to offset lucrative but volatile returns in investment banking with more stable earnings, thanks to expanded operations. Banks have seen a slowdown in transactions with businesses. Now they may also see their retail businesses struggling.

The digital age has changed things for big banks like JPMorgan, where CEO Jamie Dimon said in May it would be a “battle” to succeed outside of the domestic market.

The bank, like many others, has also wrestled with questions about how to manage digital assets.

Umar Farooq, CEO of Onyx by JPMorgan, said crypto has “a long way to go” as a competitor to traditional finance, but is also too disruptive to ignore, PYMNTS wrote.

Read more: JPMorgan’s Farooq: Banks will win next round of crypto assets

The regulatory infrastructure is not yet in place, which slows down the financial sector.

“If you think about repositories, token repositories don’t exist in the world right now,” Farooq said.

But he said there aren’t many use cases yet.

“Most crypto is still junk, actually… except for, I would say, a few dozen tokens,” he said.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

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