NatWest extends savings offer with Cushon deal
NatWest (RBS) Group has acquired a majority shareholding in savings and pensions business Cushon, giving the bank a new suite of products, in a deal worth £144 million.
Cushon’s primary products are its workplace ISA and carbon reduction focused master trust pension. It also offers Junior and Lifetime ISAs, as well as a general investment account.
NatWest Group will hold 85% of Cushon for £144m – with 15% retained by Cushon management. Subject to regulatory approval it is expected to complete this year.
The Cushon proposition will initially be offered to NatWest Group’s commercial mid-market customers, through the bank’s 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.
NatWest chief executive Alison Rose, said: “This acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff.
“Core to our purpose-led strategy is supporting customers at every stage of their lives, and by entering this fast-growing market we are equipping ourselves with the tools to develop a proposition which responds to our customers’ changing needs whilst delivering value-driven sustainable growth and returns.”
Peter Flavel, chief executive of NatWest’s wealth businesses, said: “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, 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 wellbeing.”