Sign for J.P. Morgan on 7th March 2020 in London, United Kingdom. JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York.
Mike Kemp | Getty Images
LONDON — JPMorgan said Thursday it has agreed to buy British online investment management platform Nutmeg for an undisclosed sum.
The U.S. banking giant said the deal, which is still subject to regulatory approval, would complement its plans to launch a standalone digital bank brand in the U.K. later this year.
With more than £3.5 billion ($4.9 billion) in assets under management, Nutmeg is one of the U.K.’s largest robo advisors. The company offers a range of investment accounts, including ISAs, pensions and general investment accounts. Its rivals include the likes of Wealthsimple, Moneyfarm and Moneybox.
“We are building Chase in the U.K. from scratch using the very latest technology and putting the customer’s experience at the heart of our offering, principles that Nutmeg shares with us,” Sanoke Viswanathan, CEO of international consumer at JPMorgan, said in a statement.
“We look forward to positioning their award winning products alongside our own, and continuing to support their innovative work in retail wealth management.”
Nutmeg CEO Neil Alexander said customers should “expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the U.K.”
“Britain is home to an increasingly crowded retail banking market, with challengers like Revolut, Monzo and Starling gaining a following thanks to their digital-only checking accounts,” he added.
The U.K.’s fintech market is thought to be one of the world’s largest, attracting $4.1 billion in venture capital funding last year, according to industry body Innovate Finance.
JPMorgan Securities acted as JPMorgan’s financial advisor for the transaction, while Freshfields Bruckhaus Deringer served as legal counsel. Nutmeg was advised by Arma Partners as financial advisor and Taylor Wessing as legal counsel.
(With Inputs from cnbc)
#JPMorgan #buy #digital #wealth #manager #Nutmeg