NatWest Group has agreed to acquire a majority shareholding in Cushon, a workplace savings and pension fintech.
The British bank will acquire 85% of Cushon for £144m, with 15% retained by Cushon’s management. The deal is expected to go through later this year.
Cushon’s primary products are its workplace individual savings account (ISA) and master trust pension, which offers investments with less C02 emissions.
The UK-based fintech also offers junior and lifetime ISAs, and a general investment account.
The acquisition will allow NatWest to offer workplace pensions and savings products to its commercial customers, as part of its financial wellbeing services.
Cushon’s products will initially be offered to NatWest’s commercial mid-market customers, following a successful pilot in 2022.
Alison Rose, chief executive officer of NatWest Group, commented: “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.”
Peter Flavel, chief executive of NatWest’s wealth businesses, added: “On average, UK employees are due to outlive their savings by 10 years and we are committed to helping reduce this savings gap.
“We believe Cushon’s engaging, app-first pension will help customers by moving their pension and workplace savings schemes from a compliance burden to an employee benefit.”
Ben Pollard, chief executive officer and co-founder of Cushon, said: “Becoming part of NatWest Group will accelerate our plans for further technology-led innovation to improve the UK’s financial wellbeing.
“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.”
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