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NatWest acquires 85% of fintech Cushon for £144m

NatWest Cushon
Image credit: Cushon

NatWest has acquired an 85% stake in London-based fintech Cushon for £144m, with the remaining equity retained by “Cushon management”.

Cushon was co-founded by Ben Pollard and Phil Hollingdale. It offers ISAs, investment accounts and pensions.

Alison Rose, CEO of NatWest Group, said: “By combining the scale, experience and expertise of NatWest Group with Cushon’s innovative workplace savings and pensions products, this acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff.”

According to Dealroom data, the firm has raised $66.8m (£54.9m) since it was founded in 2014.

In April last year, following its acquisition of Creative Benefits, Cushon said it had approximately £1.7bn in assets under management, making it the “fifth largest master trust pension provider in the UK”. It now reports £1.85bn in assets under management.

The investment comes after NatWest trialled Cushon last year and will now be recommended to its commercial mid-market customers.

Cushon’s services will initially be offered to NatWest Group’s commercial mid-market customers by relationship managers.

“Becoming part of NatWest Group will accelerate our plans for further technology-led innovation to improve the UK’s financial wellbeing,” said Pollard. “Together, we look forward to driving more positive change in workplace savings and pensions.”

NatWest’s acquisition of Cushon is still subject to FCA approval.

Last month the bank, along with Quilam Capital, supplied a £110m debt financing facility to tech subscription service Raylo.