JPMorgan Chase and Digital Rivals Flock to Germany's Lucrative Market
TL;DR
JPMorgan Chase and other major banks are entering Germany's digital banking market, targeting its €4 trillion in deposits. Competition is rising, but market share shifts will likely be gradual due to lower setup costs and breakeven thresholds.
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JPMorgan Chase, BBVA, Santander, and Credit Agricole are launching digital banks in Germany, targeting the country's vast pool of deposits, estimated at nearly €4 trillion. Established lenders like Deutsche Bank and local savings banks will face competition, but real change in market shares is likely to proceed slowly. Digital banks have become cheaper to set up, and the breakeven level of customer deposits needed to capture has fallen dramatically. Germany's digital banking market is expected to become increasingly competitive.
