Why JPMorgan Chase And Its Digital Rivals All Love Germany

When JPMorgan Chase & Co. finally opens its digital bank in Germany next year, it won’t be alone: The country is becoming a honeypot for big foreign lenders launching online-only brands. At first glance, this is mystifying given Germany’s deserved reputation for being among the toughest markets to make money in consumer finance. But what’s going on says a lot about how the business is changing and the competition that established lenders everywhere will increasingly face.
Deutsche Bank AG and the legion of local savings banks in Germany needn’t panic yet, however. A splintering of retail banking is coming to many markets, but much of the cash the new entrants are chasing is in the hands of older, less digitally active customers who could prove hard to reach. Real change in market shares is likely to proceed slowly.