Employees have highlighted financial wellbeing as one of the most important things they care about. With this mind, NatWest Group has acquired an 85 per cent share of Cushon, a workplace savings and pension fintech, to provide its commercial customers with financial wellbeing products. Cushon management will retain the remaining 15 per cent share.
The intended Cushon acquisition follows a number of financial wellbeing-focused services that NatWest Group has recently introduced, such as Rooster Money. As a result of customers’ changing needs throughout their lives, they need greater support to ensure financial resilience. These services aim to do just that.
Cushon is a London-based fintech whose mission is to improve people’s financial futures through healthier savings habits. This is in addition to making saving for the future easier and more rewarding. Cushon offers a holistic workplace pension and savings app with a carbon-neutral default fund for UK employers.
The Master Trust workplace pension and other workplace savings (ISA, JISA, LISA, GIA) will work alongside the established proposition that NatWest Group currently offers to its commercial customers. This includes a variety of tailored borrowing and financing options to help businesses grow; such as small business loans, business overdrafts, business credit cards, asset finance and invoice finance.
Aligning with causes employees care about
Cushon’s Master Trust workplace pension offers an investment strategy designed to drive down the financed CO2 emissions of customers. It is tech-first in its approach and highlights the ease of making savings and investments accessible to employees. By aligning with issues employees care about, it is also designed to increase employee engagement. It focuses on sustainability and social impact, as seen by its pension investments directly in wind farms, solar, green hydrogen, and social housing.
Since the introduction of auto enrolment in 2012, the number of eligible employees participating in a workplace pension has increased some 72ppts1. When coupled with the everchanging regulations pressing on UK pensions, there is a clear need to equip employers with the best tools in order to serve their workforce.
Cushon’s app reached a 65 per cent 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.
Blossoming partnership
Peter Flavel, chief executive of NatWest Wealth Businesses, said: “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. 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.”
Ben Pollard, CEO and co-founder Cushon, commented: “This is the next exciting chapter for a great British fintech as we join forces with a great British bank. Becoming part of NatWest Group will accelerate our plans for further technology-led innovation to improve the UK’s financial wellbeing.
“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.”
