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NatWest to Buy Stake in ESG-Focused Workplace Pension and Savings App Cushon

Cushon’s primary products offer an investment strategy designed to drive down the financed CO2 emissions of customers’ investments. With a £144 million investment, NatWest will become the company’s major stakeholder

NatWest to Buy Stake in ESG-Focused Workplace Pension and Savings App Cushon

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NatWest Group has entered into an agreement to acquire a majority share (85%) in Cushon, a workplace savings and pensions fintech, focused on a carbon-neutral investing strategy.

The intended acquisition will enable NatWest Group to offer a new suite of financial well-being services to its commercial customers and their employees. The proposition will initially be offered to NatWest Group’s commercial mid-market customers, through the bank’s relationship managers.

The offering by Cushon includes tax-free ISA products alongside the firm’s Master Trust workplace pension. The latter aims to diminish customers’ financed CO2 emissions by investing directly in wind farms, solar, green hydrogen, and social housing.

Besides that, Cushon offers workplace financial education at scale, including one-to-one financial check-ups available to every employee. The app has demonstrated high employee engagement with a 65% download level among employee pension members.

The intended acquisition is expected to occur later in 2023. With a £144 million investment, NatWest will own 85% of Cushon, while 15% remain held by Cushon management. The deal is still subject to regulatory approval.

As a separate fintech company, Cushon will continue fulfilling its ESG-focused growth ambitions in the Workplace Pensions and Savings market, in addition to distributing to NatWest commercial customers.

“Together, we look forward to driving more positive change in workplace savings and pensions. Cushon’s cutting edge technology and socially responsible investment funds will allow even more UK savers to benefit from a convenient, great value way to save; and understand the positive impact their life-long savings can have on issues that matter, such as climate change.”
Ben Pollard, CEO and co-founder, Cushon

We have previously reported on the multiple benefits ESG focus brings to fintechs.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.