NatWest completes Cushon deal

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NatWest Group has bought defined contribution and ISA provider Cushon, making the fintech part of NatWest’s wealth business. The bank plans to soft launch the offering to commercial clients later this year, followed by a full launch next year. 
 
NatWest said in February this year that it has agreed to take a majority shareholding of 85% in Cushon for £144m, with 15% retained by Cushon management. The change in control was approved by the Financial Conduct Authority in May. 
 
The chief executive and co-founder of Cushon, Ben Pollard, said the acquisition of his firm was a success story for the fintech sector. 
 
“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,” he said. 
 
Cushon’s main products are its workplace pension and workplace ISAs, including junior ISAs, lifetime ISAs and general investment accounts. For its workplace pensions, the firm sells a net zero investment strategy which it claims to be the world’s first. 
 
Peter Flavel, chief executive of NatWest’s wealth businesses, said: “We believe that we have a real opportunity to help our customers plan and invest better for their future, improving their financial wellbeing.” 
 
The firms said the acquisition will fuel the bank’s sustainable growth and diversify its non-interest income streams. 
 
Following a pilot in 2022, the Cushon proposition will initially be offered to NatWest Group’s commercial customers in their commercial and institutional and the Coutts Wealth businesses through the bank’s relationship managers. 
  
The bank is planning to ‘soft launch’ this proposition in the fourth quarter of the year, followed by a full launch in the first quarter of 2024. 
  
The firms want to accelerate Cushon’s growth strategy with investment and product scaling, as well as expanding engineering and growth teams.  
 
Mo Syed, head of asset management chief investment officer of NatWest Group, will chair the acquiring entity board. Andy Gray, managing director of commercial mid-market at the bank, will also join this board. 
   
NatWest started dipping its toes into pensions last year, when it offered a cash incentive of up to £5,000 to its banking customers for a pensions product. 
 
     
Will more banks enter the defined contribution market? 

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