The British banking group said that the stake acquisition will give it a workplace pensions and savings proposition, thereby enabling it to offer its commercial customers and subsequently their employees a new suite of financial wellbeing services
NatWest Group to acquire a majority stake in Cushon. (Credit: NatWest Group)
NatWest Group has agreed to acquire a stake of 85% in UK-based a workplace savings and pensions fintech Cushon for £144m.
The remaining 15% in the fintech company will be retained by its management.
Cushon’s main products are workplace individual savings account (ISA) and master trust pension. The products are said to offer an investment strategy built to reduce the financed CO2 emissions of clients’ investments.
The fintech company also offers Junior and Lifetime ISAs along with a general investment account.
Last year, Cushon acquired Creative, the manager of Creative Pension Trust in a move to become one of the largest master trust providers in the UK.
Cushon CEO and co-founder Ben Pollard said: “This is the next exciting chapter for a great British fintech as we join forces with a great British bank. Becoming part of NatWest Group will accelerate our plans for further technology-led innovation to improve the UK’s financial wellbeing.
“Together, we look forward to driving more positive change in workplace savings and pensions.
“Cushon’s cutting edge technology and socially responsible investment funds will allow even more UK savers to benefit from a convenient, great value way to save; and understand the positive impact their life-long savings can have on issues that matter, such as climate change.”
NatWest Group said that the stake acquisition will give it a workplace pensions and savings proposition. This will enable it to offer its commercial customers and subsequently their employees a new suite of financial wellbeing services.
The British banking group said that initially the Cushon proposition will be offered to its commercial mid-market customers through its relationship managers, following last year’s successful pilot.
NatWest Group added that Cushon will continue its ambitions of organic growth in the workplace pensions and savings market apart from distributing its products to the bank’s commercial customers.
NatWest Group CEO Alison Rose said: “By combining the scale, experience and expertise of NatWest Group with Cushon’s innovative workplace savings and pensions products, this acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff.
“Core to our Purpose-led strategy is supporting customers at every stage of their lives, and by entering this fast-growing market we are equipping ourselves with the tools to develop a proposition which responds to our customers’ changing needs whilst delivering value-driven sustainable growth and returns.”
The closing of the deal, which is subject to regulatory approval, is anticipated to occur later this year.