JPMorgan Chase will launch its Chase digital retail bank in Germany in the second quarter of next year, marking a bold move into the crowded banking market of Europe’s largest economy.

The US banking giant has been preparing the launch in recent years through extensive hiring, but had kept the timing under wraps, Reuters reported.

Germany will be Chase’s second European market, following its launch in Britain in 2021.

JPMorgan is already one of the largest banks in Germany, attracted by its wealthy customer base, stable regulatory environment, and vibrant fintech sector.

However, the country presents challenges due to a fragmented banking landscape, with analysts noting that the retail market is highly competitive and margins are thin.

Deutsche Bank, Germany’s largest lender, has been seeking to make its retail division more profitable by reducing staff and closing branches.

Other institutions, such as Spain’s Banco Bilbao Vizcaya Argentaria, have already launched digital banks in Germany, while ING and N26 are among the major online banks long operating in the country.

The Chase bank will be headquartered in Berlin and will initially offer savings accounts before expanding its product range.

“This marks a significant expansion of JPMorgan Chase’s footprint in the country, building on over a century of serving clients and communities there,”

JPMorgan said.

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