“This acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff.” – Alison Rose, Chief Executive Officer of NatWest Group.

NatWest Group (LON: NWG) plans to acquire a majority shareholding of 85% in Cushon, a workplace savings and pensions fintech, for £144 million (US$175 million), with the remaining 15% retained by Cushon management.

Cushon offers a workplace ISA and master trust pension. The latter has an investment strategy that aims to reduce financed CO2 emissions. The firm also offers Junior and Lifetime ISAs, as well as a general investment account. (NatWest Group)

The acquisition will allow NatWest Group to expand its financial wellbeing services and offer workplace pensions and savings to its commercial customers.

“As a workplace savings disrupter, Cushon will help NatWest Group achieve its strategic, purpose-led vision of helping customers save for tomorrow,” said Peter Flavel, Chief Executive of NatWest’s wealth businesses. “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,” he added.

The Cushon proposition will initially be offered to NatWest Group’s commercial mid-market customers. Cushon will continue to grow organically and distribute its products to the bank’s commercial customers.

The deal is subject to regulatory approval and expected to complete in 2023.

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