Business Insider takes a look inside JPMorgan Chase and how the company’s digital only bank Finn was shut down just two years after launching; they estimate the effort cost the bank between $50mn and $100mn; some of the biggest reasons for its failure include how it was set up, skepticism around how it would operate, and uncertainty over its impact on the bank’s traditional Main Street offering; internal struggles seem to doom the project throughout as different areas of the bank did not talk to each other; the app was not built by the bank but instead through contracted service providers; while they wanted to operate the app separately it still ran on JPM’s core technology, adding to the complexity; the project shows that when banks try to disrupt themselves it might not work out as planned, though the bank will most certainly take lessons from how this all played out. Source.
