NatWest pays £144mn for stake in savings fintech Cushon

UK banking group NatWest has agreed to buy an 85% stake in jobs savings fintech Cushon in a deal worth £144m.

NatWest says the acquisition will allow it to “offer a new suite of financial wellbeing services” to business customers and their employees, at a time when hard-pressed consumers are looking for ways to get the most out of their money. Cushon’s main products include a workplace ISA, master trust pension, and junior and lifetime ISAs as well as a general investment account. NatWest relationship managers will begin offering the newly acquired offering to their commercial mid-market customers, following a successful trial last year.

The acquisition will also play into NatWest’s sustainability strategy, which includes a commitment to reach net zero by 2050 and halve the impact of NatWest’s funding activity by 2030. Cushon says pension funds finance 23 tonnes of CO2 emissions each year on average, but it has launched a net zero pension that allows consumers to take control of the impact of their investments.

Cushon’s product mix is ​​complemented by a simple and intuitive mobile app, which allows users to take control of their financial products. Fintech was founded in 2014 and is based in London, from where it is led by former actuarial consultant Ben Pollard.

The acquisition allows NatWest to ‘reduce the savings gap’

Alison Rose, chief executive of NatWest Group, 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 prosperity of their employees.

“At the core of our purpose-driven strategy is to support customers at all stages of their lives, and by entering this fast-growing market we are equipping ourselves with the tools to develop an offering that responds to customers’ changing needs, while delivering value-driven sustainability growth and returns.”

Peter Flavel, managing director of NatWest’s wealth businesses, believes the acquisition will have a positive impact on UK savers: “On average, employees in the UK will 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 plans from a compliance burden to an employee benefit.”

According to research published a week ago by Standard Life, 50% of consumers believe that information about pensions and retirement is “overwhelming”. Own research published last year by Aviva shows that from a sustainability perspective, four out of five employers (80%) believe it is important that workplace pensions are invested responsibly.

Ben Pollard, CEO and co-founder of Cushon, concludes: “This is the next exciting chapter for a major UK fintech as we join forces with a major UK bank. Becoming part of the NatWest Group will accelerate our plans for further technology-driven innovation to improve the UK’s economic wellbeing. Together, we look forward to driving more positive change in savings and pensions in the workplace. Cushon’s ground-breaking technology and socially responsible investment funds will allow even more UK savers to benefit from a convenient and valuable way to save; and understand the positive impact their lifelong savings can have on issues that matter, such as climate change.”