NatWest Group — formerly known as RBS — said on Monday it has completed its acquisition of a majority shareholding in workplace savings and pensions fintech Cushon.
“In February 2023, NatWest Group agreed to acquire 85% of Cushon for £144m, with 15% retained by Cushon management,” said NatWest.
“This acquisition was subsequently approved by the FCA in May.
“With FCA approval for a change in control received in May and the acquisition process completing today, Cushon is now part of the NatWest Group within the Wealth Business.
“For NatWest Group, Cushon is a strategic acquisition that fuels sustainable growth and diversifies non-interest income streams.”
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.
NatWest said the acquisition provides it with “a leading tech-enabled suite of financial wellbeing products and services to offer its commercial customers and, consequently, their customers employees.”
Following a successful pilot in 2022, the Cushon proposition will initially be offered to NatWest Group’s commercial customers in their Commercial & Institutional and Coutts Wealth businesses, through the bank’s relationship managers.
It is planned that this proposition will be soft launched in Q4 2023 with a full launch in Q1 2024.
Mo Syed, Head of Asset Management & Chief Investment Officer, NatWest Group, will serve as the chair of the acquiring entity board (NW A Holdings Limited). Andy Gray, Managing Director of Commercial Mid-Market, NatWest Group, will also join this board.
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.”
Cushon CEO and co-founder of Cushon Ben Pollard 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, and help millions more people across the UK build a feel-good future. What a great success story for the UK fintech sector.”