NatWest is to spend £144 million to aquire an 85% majority stake in workplace savings and pensions fintech Cushon.
Cushon offers a holistic workplace pension and savings app with a carbon neutral default fund for UK employers.
The app provides access to a suite of tax-free ISA products alongside the firm's Master Trust workplace pension, which is designed to drive down the financed CO2 emissions of customers by investing directly in windfarms, solar, green hydrogen, and social housing.
Cushon’s app has demonstrated high employee engagement - reaching 65% download among employee pension members. The fintech also offers workplace financial education at scale, including one-to-one financial check-ups available to every employee.
For NatWest, the agreement will provide it with the first opportunity to offer commercial customers and their employees a suite of financial wellbeing products to match the products it already provides to individual consumers.
Peter Flavel, chief executive of NatWest Wealth Businesses, says: “Cushon’s disruptive proposition will help NatWest Group achieve its strategic, purpose-led vision of helping customers save for the future and manage their financial wellbeing. 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.”