Chase Sustains Pricing Pressure Through Parent

This is a balance sheet contest as much as a product contest. Chase UK can pay up for deposits and waive fees for longer because JPMorgan can treat the UK app as one channel inside a much larger global bank, while Monzo has to make the economics work inside its own standalone P&L. That matters most in savings and cards, where customers can switch for a better rate or no annual fee with almost no friction.

• Monzo has become much larger and more resilient, with more than 12m customers, £16.6bn of deposits, and £113.9m adjusted profit before tax in FY2025. That gives it real room to compete, but it still funds promotions from its own balance sheet, not from a parent bank earning profits elsewhere.
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• Chase uses price as a simple acquisition wedge. In the UK today it advertises a 4.5% boosted savings rate for new customers, a 5.0% round up account, and a credit card with no annual fee and no foreign exchange fees. Those offers are easy for consumers to compare, and expensive for smaller banks to match indefinitely.
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• Across neobanking, the winners since rates rose have been the players with enough deposits, lending, or outside capital to turn balance sheet products into growth engines. The weaker cohort shut down or consolidated, while Monzo and Revolut improved profitability by adding lending, subscriptions, and higher yielding deposit products.
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The next phase is less about who has the prettiest app, and more about who can turn cheap customer acquisition into durable profit. Monzo is moving in that direction by deepening savings, credit, and subscriptions, but incumbent owned challengers like Chase will keep setting the floor on pricing for mass market banking products.