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Barclays's Digital Bank Bet in U.S. Fades Under Cost Pressures

  • CEO Staley puts aside plan for own-name digital consumer bank
  • Expanding Barclays brand in the U.S. is ‘extremely expensive’
Signage is displayed outside the Barclays PLC headquarters in New York, U.S., on Friday, Feb. 22, 2019. 
Photographer: Michael Nagle/Bloomberg

Jes Staley is turning away from his ambition to build a Barclays Plc-branded digital consumer bank in the U.S.

The London-based lender spent several years working to expand beyond its card partnerships with brands such as Uber Technologies Inc. and American Airlines Group Inc. Staley, who has tightened cost controls to hit profitability targets, said in a recent speech that the plan is now looking “extremely expensive.” The bank will now stick to its more affordable co-branded offerings.