Natwest has announced a deal to acquire a majority stake in UK-based FinTech Cushon.
The bank will acquire 85 per cent of the workplace pensions and ISAs company for £144 million, with Natwest saying that the deal would allow it to offer a new range of financial products to commercial customers and their staff. The remaining 15 per cent of the company will be retained by Cushon management.
Natwest said that the Cushon tech will initially be offered to NatWest Group’s commercial mid-market customers, through the bank’s relationship managers, following a successful pilot in 2022. It added that Cushon will continue its organic growth ambitions in the Workplace Pensions and Savings market, in addition to distributing to NatWest commercial customers.
This is the latest example of a UK-based bank acquiring a smaller FinTech in an effort to broaden its product range and compete with the newer challenger banks. NatWest chief executive Alison Rose last year said that the company was looking to make such acquisitions, with a focus on the wealth management sector.
Commenting on the deal, 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.”
Ben Pollard, CEO and co-founder, Cushon, 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.”
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