Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

JPMorgan Chase buys Nutmeg as it expands in UK

JPMorgan

Nutmeg will form the basis of JPMorgan Chase’s retail digital wealth management offering internationally

JPMorgan Chase has bought Nutmeg as it expands into the UK retail banking and investment market.

The U.S. bank is looking to take on established British retail banking rivals and a growing band of fintechs with plans to become a full-service retail bank under its Chase brand. It will compete with Goldman Sach’s consumer brand Marcus, which launched in Britain in 2018.

Nutmeg – which has more than 140,000 clients and more than 3.5 billion pounds ($4.89 billion) in assets under management – will form the basis of JPMorgan Chase’s retail digital wealth management offering internationally, Nutmeg said in a statement.

Though financial terms of the deal were not disclosed, a source close to the transaction said it valued Nutmeg at close to 700 million pounds ($972.79 million).

While Nutmeg has quickly become one of the UK’s best known financial technology companies and robo-advisers, it has yet to turn a profit. In its most recent set of full accounts for 2019, the group made a pretax loss of 22 million pounds.

JPMorgan confirmed the acquisition and said it would complement the group’s UK digital bank launch under its Chase brand later this year.

We are building Chase in the UK 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, said Sanoke Viswanathan, CEO of international consumer at JPMorgan Chase.

JPMorgan had already launched a product partnership with Nutmeg in November.

The Nutmeg deal follows plans by rival U.S. bank Goldman Sachs group Inc to shift the focus of its Marcus consumer division in Britain towards wealth and investments. The bank told Reuters last month that it intended to offer a robo-adviser to Marcus clients in the country by the first quarter of next year.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.