Banking organisation NatWest Group has acquired 85% shareholding in workplace savings and pensions fintech Cushon, with the remaining 15% retained by Cushon management.
NatWest made the move in order to offer commercial customers and their employees a suite of financial wellbeing products. It follows similar acquisitions by the institution including that of prepaid family debit card business Rooster Money.
Cushon offers pension and savings products via a mobile app, which aims to create a personalised experience that helps engage savers with personal goals. The solution integrates with payroll and benefits platforms, delivered via the workplace as an employee benefits. Users can save into pensions, ISAs and other products direct from their pay. It also offers a carbon neutral default fund for UK employers.
The business has £1.8 billion of assets under management, and its corporate clients include 250 employers, including those in the FTSE 100.
The Master Trust workplace pension and other workplace savings vehicles provided by Cushon will work alongside the established proposition NatWest offers to commercial customers, such as small business loans, business overdrafts, business credit cards, asset finance and invoice finance.
Peter Flavel, chief executive of NatWest Wealth Businesses, said: “Cushon’s disruptive proposition will help NatWest Group achieve its strategic, purpose-led vision of helping customers save for the future and manage their financial wellbeing. On average, UK employees are due to 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 schemes from a compliance burden to an employee benefit.”
Ben Pollard, CEO and co-founder Cushon, added: “This is the next exciting chapter for a great British fintech as we join forces with a great British bank. Becoming part of NatWest Group will accelerate our plans for further technology-led innovation to improve the UK's financial wellbeing.
“Together, we look forward to driving more 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; and understand the positive impact their life-long savings can have on issues that matter, such as climate change.”
