Chase Bank pulls in more than 1m UK customers in its first year

Chase Bank has more than one million UK customers now banking with it, just 12 months after it opened operations in Britain.

The digital bank, part of US giant JP Morgan, launched last September and has already had more sign-ups than both Monzo and Starling Bank managed in their first full 12 months combined – although it has far more muscle behind it.

Chase already serves more than 56million digital customers in the US and its parent company JPMorgan manages trillions of pounds of assets. 

Chasing the pack: The digital bank has bagged more than 1m British customers since launching last September

In Britain, Chase now holds more than £10billion of customer deposits and has processed 92million card and payment transactions since launch. 

Compared to other challenger banks, the customer growth to date is impressive. 

Monzo Bank gained 150,000 in its first year, albeit to its pre-paid debit card service at the time, while 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 via a range of features that help them to budget, manage money, spend and save. 

In March it launched, what was at the time, a market leading easy-access savings account paying 1.5 per cent.

This has proved immensely popular. According to Chase, customers have an average of £27,000 in their Chase Saver account. 

In May, it launched a referral scheme rewarding customers with £20 each time they successfully referred someone into opening a Chase current account.

Sanjiv Somani, UK chief executive of Chase and Nutmeg said he is excited by the start it has made but reiterated that this was only the start.

Sanjiv Somani, UK chief executive of Chase and Nutmeg said he is excited by the start it has made but reiterated that this was only the start.

Although its easy-access savings deal is now bettered by a couple of dozen savings providers and its referral scheme has long since ended, it may still be continuing to attract customers in other ways.

Perhaps most notably, it is offering 1 per cent cashback on spending for the first 12 months.

This is more generous than most cashback credit cards – albeit only for 12 months. 

It means that someone spending £15,000 on the card in their first year could receive up to £150 in cashback.

It offers a fee-free debit card abroad meaning its customers are not charged any fees when using their card when traveling, including for cash withdrawals at ATMs.

It also offers an automatic regular savings function that allows customers to round up their spare change to the nearest £1 with a 5 per cent interest rate boost.

According to Chase, customers are actively using round-ups, with customers saving an average of £13 per month from the small change on their transactions. 

Sanjiv Somani, UK chief executive of Chase and Nutmeg, said: ‘We set out to offer customers good value banking products with a straightforward experience delivered through an easy to use app, and we’re excited that consumers have responded so positively to our offer in our first year.’

Numberless: The Chase debit card doesn't have a number. The banks says this means there is a smaller risk if the physical card is lost and a new card number can be generated straightaway.

Numberless: The Chase debit card doesn’t have a number. The banks says this means there is a smaller risk if the physical card is lost and a new card number can be generated straightaway.

What does the future hold for Chase?

Chase plans to continue growing its UK customer base. However, to do this, it will need to continue to offer better features and benefits than other current account providers.

Andrew Hagger, personal finance expert at MoneyComms believes that with its savings rate no longer so competitive, its customer inflows may already be slowing.

Hagger says: ‘Chase has no doubt gained a lot of accounts from the linked 1.5 per cent savings account which was way better than anything else in the market at the time of launch.

‘But 1.5 per cent is pretty run of the mill now compared with the easy-access savings market so take up has probably slowed.

‘I don’t think Chase participates in the Current Account Switching Service either, so I’m not sure how many people are using it as their main current account rather than a secondary account with a decent savings rate.’

Over time, Chase says it intends to introduce a broad range of banking products for its UK customers. 

This will include adding new features to the Chase current account, new savings options for customers, and lending products, such as a Chase credit card. 

It has also recently closed on its acquisition of Nutmeg, the digital wealth management platform, which will form part of an extended investments offer for Chase customers. 

Somani added: ‘This is just the beginning and, as we broaden our product offering and fully integrate the investment products offered by Nutmeg, we look forward to playing a wider role in the financial lives of our customers in the future and supporting the communities we serve.’


Chase Bank’s will pay £1% cashback on spending for the first 12 months. Customers also get access to an easy-access linked savings account paying 1.5% on balances up to £250,000. The account is completely free to set up and is entirely app based. Also no charges when using the card abroad.

Lloyds Bank

The Club Lloyds account offers £150 free cash when you switch. It also pays 0.6 per cent on balances up to £4,000, and 1.5 per cent on £4,000 – £5,000. Choose a reward each year from 6 cinema tickets, an annual magazine subscription, 12 digital movie rentals. There is a £2 monthly account fee to pay.


Natwest’s Everyday bank account pays £175 when you switch. You just need to deposit £1,250 in the account before 16 December and login to mobile banking.


First Direct will give newcomers £175 when they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at least £1,000 within three months of opening the account.


Nationwide’s FlexDirect account comes with up to £125 cash incentive for new and existing customers. Plus 5% interest on up to £1,500 – the highest interest rate on any current account – if you pay in at least £1,000 each month, plus a fee-free overdraft. Both the latter perks last for a year.