NatWest has completed its acquisition of a majority shareholding in workplace savings and pensions fintech Cushon.
The bank agreed to acquire 85% of Cushon for £144m In February, with 15% retained by Cushon management.
The acquisition was subsequently approved by the FCA in May.
NatWest said the acquisition “fuels sustainable growth and diversifies non-interest income streams.”
It said the acquisition provides NatWest with a tech-enabled suite of financial wellbeing products and services to offer its commercial customers and, consequently, their customers’ employees.
Cushon’s primary products are its workplace pension and range of workplace ISAs, including junior ISAs, lifetime ISAs and general investment accounts.
Its workplace pension offers an investment strategy designed to drive down the financed CO2 emissions of customers’ investments.
Following a pilot in 2022, the Cushon proposition will be offered to NatWest’s commercial customers in their commercial & institutional and Coutts Wealth businesses, through the bank’s relationship managers.
The proposition will be soft launched in the fourth quarter of 2023 with a full launch in the first quarter of 2024.
Cushon will continue its organic growth ambitions in the workplace pensions and savings market, as well as distributing to NatWest commercial customers.
Peter Flavel, chief executive of NatWest’s wealth businesses, said: “We’re delighted that we can now officially welcome Cushon into NatWest Group. We believe that we have a real opportunity to help our customers plan and invest better for their future, improving their financial wellbeing.”
Ben Pollard, CEO and co-founder of Cushon, said: “This is the next exciting chapter for a great British fintech as we join forces with a great British bank. Together with NatWest Group, we can’t wait to drive more positive disruption and innovation in workplace savings and pensions.”
