NatWest to buy 85% stake in workplace savings FinTech Cushon

By Gloria Methri

The NatWest Group has agreed to acquire an 85% stake in Cushon, a workplace savings, and pensions FinTech, for £144 million.

Cushon’s primary products are its workplace ISA and master trust pension – which offers an investment strategy to drive down the CO2 emissions of customers’ investments. It also offers Junior and Lifetime ISAs, as well as a general investment account.

The acquisition will therefore provide NatWest with a workplace pensions and savings proposition, enabling the group to offer a new suite of financial well-being services to its commercial customers and, consequently, to their employees.

The NatWest Group will acquire 85% of Cushon for £144 million, with 15% retained by the Cushon management. The agreement remains subject to regulatory approval and is expected to occur later in 2023.

The Cushon proposition will initially be offered to NatWest’s commercial mid-market customers, through relationship managers, following a successful pilot in 2022. Cushon will continue its organic growth ambitions in the Workplace Pensions and Savings market, in addition to distributing to NatWest commercial customers. 

Peter Flavel, Chief Executive of NatWest’s wealth businesses, said, “As a workplace savings disrupter, Cushon will help NatWest Group achieve its strategic, purpose-led vision of helping customers save for tomorrow. On average, UK employees are due to outliving 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, of Cushon, said, “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 well-being. 

“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.”