JPMorgan Chase is set to buy digital wealth manager Nutmeg, the companies confirmed today, as fintech’s trajectory has been pushed even higher by the pandemic.
While still subject to regulatory approval, the deal will bolster JPMorgan’s digital bank branch, under the Chase brand, which is planned for launch in the UK later this year.
The US financial services firm will take over Nutmeg’s customer base of over 140,000 investors and over £3.5bn of assets under management.
CEO of international consumer at JPMorgan Chase, Sanoke Viswanathan, said: “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.”
Customers flocking to brick-and-mortar banks have dwindled throughout three national lockdowns in the UK, and with the pandemic pushing the pedal on a tech boom – an increasing number of digital banking options are emerging.
No figure has yet been put on the deal but the digital banking offering is currently being piloted in an internal testing phase, prior to its public release.
Nutmeg’s CEO, Neil Alexander, urged that “Nutmeg’s customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the UK.”
Last year, the companies teamed up to launch a “bespoke new investment offering”, named ‘Smart Alpha’, for Nutmeg customers.