-
I see chase offer a great welcome bonus on there chase American BA card , any ideas if they will launch one in the U.K. to follow with there current accounts
“The venture will expand from current and savings accounts by rolling out lending products – likely starting with a credit card – by the end of 2023, Somani said.”
https://www.reuters.com/business/finance/jpmorgan-doubles-down-uk-retail-bank-chase-2022-09-27/
But I can’t see Chase being allowed to offer any sort of BA card in the UK. Surely Amex and Barclays have some sort of exclusivity deal with BA?
Barclays filled the gap left by Lloyds.
The Sainsburys deal was at the expense of Tesco.
It’s an interesting prospect but with Amex and Barclays tied into Avios I think it unlikely they will go down this route. There is however, a huge hole in the UK market with regards to cobranded hotel cards and I wonder if Creation are continuing with the cards that weren’t closed for contractual reasons. I also think Chase has the corporate depth to take an initial loss in order to expand into the UK market. They are currently paying me to have their current account via the 1% cashback on purchases which with no overseas loading worked out quite lucrative on my last trip.
I think one thing, if anything, people learn from HfP and the forums is that thou shall never compare the UK credit card market with the US market.
My brain is naturally going towards a US based company co branded card. Potentially IHG as creation clearly dont want them and IHG seem to be taking there time with a replacement
Alternatively, one of the big ME airlines might be willing to go 50/50 with a loss leader strategy to help gain a bigger market in the UK. Emirates springs to mind, but I hope I’m wrong as I hate hard expiry dates!
I would guess a cashback card is more likely than a co-brand in the current climate. It’s easier for the issuing bank to control the time or offers and the availability of the product. A co-brand card locks the issuer into a contract to buy points from the travel rewards scheme operator. The bank account has a time limited loss-leader feature which is the sort of thing they might do again (see also the Barclays Business product promoted today: a three month introductory loss-leader with cashback).
In my dreams it would be a Hyatt card with a generous one point per pound spend, no fx, and curve-friendly. Sadly Joe Public are less likely to be attracted to that product than a 0.25% cashback card.
Outside US, companies are reluctant to launch cobranded cards currently.
Was speaking to friends in Singapore and India, both markets with no cap on interchange fees. Issuers can easily earn 2% (net income could be lower). But there’s a lack of cobranded cards.
Marriott for example has a dozen hotels in singapore and with 2% interchange fee, you’d think the Amex Marriott card would be a no brainer. But nope, it’s not available. Same in India.Outside US, companies are reluctant to launch cobranded cards currently.
Was speaking to friends in Singapore and India, both markets with no cap on interchange fees. Issuers can easily earn 2% (net income could be lower). But there’s a lack of cobranded cards.
Marriott for example has a dozen hotels in singapore and with 2% interchange fee, you’d think the Amex Marriott card would be a no brainer. But nope, it’s not available. Same in India.Any ideas as to why?
Realistically, given that Goldman Sachs is effectively winding down Marcus, I’d see it more likely that Chase pulls out of the UK than adds more products. The market is too competitive.
Outside US, companies are reluctant to launch cobranded cards currently.
Was speaking to friends in Singapore and India, both markets with no cap on interchange fees. Issuers can easily earn 2% (net income could be lower). But there’s a lack of cobranded cards.
Marriott for example has a dozen hotels in singapore and with 2% interchange fee, you’d think the Amex Marriott card would be a no brainer. But nope, it’s not available. Same in India.“In a first-of-its-kind initiative, Qatar Airways Privilege Club, British Airways Executive Club and India’s IndusInd Bank, have partnered to introduce the unique multi-branded credit card, with two leading international airlines powered by Visa.”
Realistically, given that Goldman Sachs is effectively winding down Marcus, I’d see it more likely that Chase pulls out of the UK than adds more products. The market is too competitive.
That is clear as day to me as well. Chase does not have the same charm/history/recognition here as it has in the US. Being online-only makes it just worse, makes it look like they are half-assing it. Why they’d do it like that when the market is competitive and the economy is almost in recession is beyond me.
It’s a trial of a a digital only banking concept that may then be rolled out elsewhere. Chase shareholders are not happy as the bank projects break even only by 2028 and estimated losses of $450m for 2022, and a further big loss in 2023. They have however, been actively recruiting additional staff to extend the product range and have already attracted a sizeable customer base with the loss leading cashback proposition. They launched in the UK because while it is competitive, it is a very liberalised market with a very attractive sophisticated and direct customer base.
Of course @JDB but this experiment does not make much sense just because of the reasons you cited: UK is a unique economy which makes it impossible, under the current conditions, to transfer the results of this experiment to another market.
To me it seems both G Sachs and Chase experiments here were sad failures. If they wanted a real experiment they should’ve experimented with real credit products: loans, mortgages, credit cards… What they did was to surf the wave of strong dollarGoldman has very little experience of consumer products. Marcus was principally a deposit gathering exercise but GS efforts have generally been unpopular with staff and shareholders as margins are so low vs their core businesses. GS efforts at issuing cards (with Apple) and loans in the US have been something of a disaster with high delinquency rates. Chase is totally different as one of the smartest operators in consumer banking. They have already said they will introduce credit products in the UK this year, but to introduce all products at once wouldn’t have made much sense and been risky. Chase only launched about 15 months ago, so it seems rather premature to say it is a “sad failure”. Chase has told investors it is already looking at other markets to add to the UK.
I cannot remember where I read it, but I think it was $1bn losses that Chase UK made (so far)? That’s why I don’t have high expectations, especially for a miles/hotels credit card. Best we can get is 0.5% cashback credit card.
I cannot remember where I read it, but I think it was $1bn losses that Chase UK made (so far)? That’s why I don’t have high expectations, especially for a miles/hotels credit card. Best we can get is 0.5% cashback credit card.
The losses to date are in line with publicly disclosed projections and the number you mention may be the total expected cost? Revolut has raised over $2bn launching and others have raised similarly silly money to establish UK app based banks; it’s a very expensive game. A UK points card (particularly a niche hotel one) does seem quite unlikely but who knows?
I have the Chase BA card and its 100k welcome bonus was insanely good! Would be surprised if they bought it here. Also I do like the 10% off flights departing US but annoyingly most of my returns are from the UK
I just got an email from Chase…..
“Starting in April, you’ll earn 1% AER interest on all your current account balances. It’s another way for you to get more from your money – as part of our promise of rewarding banking. We’ll let you know when it’s ready.”
I just got an email from Chase…..
“Starting in April, you’ll earn 1% AER interest on all your current account balances. It’s another way for you to get more from your money – as part of our promise of rewarding banking. We’ll let you know when it’s ready.”
Plus they are extending their cashback deal and their savings account pays 3%.
I just got an email from Chase…..
“Starting in April, you’ll earn 1% AER interest on all your current account balances. It’s another way for you to get more from your money – as part of our promise of rewarding banking. We’ll let you know when it’s ready.”
Plus they are extending their cashback deal and their savings account pays 3%.
The debit card cashback is extended but will require minimum monthly payment into account and capped at £15/month.
They also mention an upcoming credit card in their email.
They also mention an upcoming credit card in their email.
Oddly my email only mentions the 1% interest…
Sorry for the duplicate post. Happy for the 1st one to be deleted.
My email doesn’t mention a credit card.
They also mention an upcoming credit card in their email.
No it doesn’t.
I’d imagine loans or mortgages would be here long before credit cards.
It was not in the email, but is mentioned on their news article under ‘things to look out for’
No timescale mentioned…
https://www.chase.co.uk/gb/en/updates-from-chase/coming-soon-2023/
- You must be logged in to reply to this topic.
Popular articles this week:
