American banking giant JPMorgan Chase has acquired UK-based online investment management firm Nutmeg at an undisclosed fee.
In a statement, Nutmeg acknowledged that the deal supports JPMorgan’s plans to launch a digital banking platform in the UK later this year. Before the deal is finalized, it will undergo the relevant regulatory approval.
According to Nutmeg, the company will form the base for JPMorgans’ digital bank retail wealth management. Currently, Nutmeg serves over 140,000 clients with at least £3.5 billion in assets under management.
The company offers several investment accounts, including ISAs, pensions, and general investment accounts.
JPMorgan Chase CEO of International Consumer Sanoke Viswanathan notes that Nutmeg’s products will be vital to the bank’s fintech product.
“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. We look forward to positioning their award-winning products alongside our own and continuing to support their innovative work in retail wealth management,” said Viswanathan.
Nutmeg further clarified that its current services would remain unaffected, but the two companies will improve product offerings.
JPMorgan to be aggressive in acquisitions
Furthermore, the acquisition follows a 2020 announcement by JPMorgan CEO Jamie Dimon that the bank would be more aggressive in search of acquisitions for asset management capabilities.
In December last year, JPMorgan announced the acquisition of 55ip, a Boston-based fintech that enables financial advisors to automate the construction of tax-efficient portfolios.
JPMorgan’s decision to enter the UK market is strategic considering the region has a robust fintech ecosystem. Some of the notable platforms include Revolut, Monzo, and Starling.