NatWest Group is reportedly considering selling its controlling stake in fintech platform, Cushon. The bank had earlier invested £144 million to gain an 85% stake in Cushon, a provider of workplace pensions and savings solutions. The potential sale aligns with the bank’s broader strategic shift.
To facilitate the sale, NatWest has engaged financial advisors. This move indicates a firm intention to divest from Cushon, despite the bank’s hefty previous investment. The reasons behind this decision are yet to be clarified.
This action is consistent with a wider trend in the banking sector. Traditional banks are reassessing their stakes in fintech startups and platforms. The global pandemic has prompted banks to focus more on their core operations and services.
NatWest’s Strategic Shift
The abrupt move to divest from Cushon suggests a strategic pivot by NatWest. This mirrors a larger trend among traditional banks, which are rethinking their investments in fintech startups and platforms. The pandemic has driven many banks to refocus on their core operations and services.
This shift is a significant change from the bank’s previous strategy of heavy investment in the fintech sector. NatWest’s £144 million investment in Cushon two years ago was a testament to its commitment to the fintech industry. However, it appears the bank is now reconsidering its position.
The effect of NatWest’s divestment on Cushon and its operations is still unknown. As a leader in workplace pensions and savings solutions, Cushon will likely continue to innovate. Both customers and industry watchers will be keen to monitor the developments and see what lies ahead for both NatWest and Cushon.
