British banking group NatWest has made a strategic move by acquiring an 85% stake in Cushon, a UK-based workplace savings fintech, for a whopping £144mn. This acquisition will enable NatWest to provide a new range of financial wellbeing services to its commercial mid-market clients, offering a suite of innovative products including a workplace ISA, master trust pension, and junior and lifetime ISAs, as well as a general investment account.
What sets Cushon apart is its sustainability strategy that focuses on reducing carbon emissions. As part of its commitment to sustainability, NatWest aims to reach net zero by 2050 and halve the impact of its financing activity by 2030. By acquiring Cushon, NatWest gains access to the fintech's net zero pension product, which allows consumers to take control of the impact of their investments, helping them make a positive change in workplace savings and pensions while also fighting climate change.
Cushon's user-friendly mobile app makes it easy for users to manage their finances and take control of their investments, making it a valuable asset for NatWest as it expands its suite of services. The acquisition will have a significant impact on British savers, who on average are due to outlive their savings by 10 years, according to Peter Flavel, Chief Executive of NatWest's wealth businesses.
Alison Rose, Chief Executive Officer of NatWest Group, believes that the acquisition will allow the bank to enhance its services to commercial customers and support the financial wellbeing of their staff. By combining NatWest Group's scale, experience, and expertise with Cushon's innovative products, the acquisition will help bridge the savings gap and provide a valuable employee benefit.
This acquisition marks an exciting new chapter for both companies, as they join forces to drive positive change in workplace savings and pensions. 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 while also understanding the positive impact their life-long savings can have on issues that matter, such as climate change.
