One of the U.K.’s largest banks is expanding its workplace savings offerings.
NatWest announced Monday (Feb. 13) it was acquiring Cushon, a British FinTech that provides savings accounts and pensions. It’s a move that comes as banks are adding to their savings offerings amid competition from neobanks.
“The intended acquisition will therefore provide NatWest Group with a workplace pensions and savings proposition, enabling the group to offer a new suite of financial wellbeing services to its commercial customers and, consequently, to their employees,” the bank said in a news release.
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The deal will see NatWest acquire 85% of Cushon for $174 million (£144 million), with Cushon management retaining the remaining 15%. The acquisition is subject to regulatory approval and is expected to be completed later this year.
NatWest said Cushon’s services would be initially offered to the bank’s commercial midmarket clients following a pilot last year.
“Cushon will continue its organic growth ambitions in the Workplace Pensions and Savings market, in addition to distributing to NatWest commercial customers,” the release said.
