American multinational investment bank and financial services holding company JPMorgan Chase & Co has acquired the UK-based digital wealth manager Nutmeg to expand its mobile banking service for retail investors in the country.
The US bank is aiming to compete with established British retail banking rivals and a rising band of fintechs with intentions to become a full-service retail bank under the Chase brand. It will compete with Goldman Sach’s consumer brand Marcus, which launched in Britain in 2018, as per the reports.
Nutmeg, which has more than 140,000 clients and more than $4.89 billion (3.5 billion pounds) in assets under management, will form the basis of JPMorgan Chase’s retail digital wealth management offering internationally, the British company said in a statement.
The deal’s financial details were not disclosed, but a source close to the deal said Nutmeg was valued at around $972.79 million (700 million pounds).
Nutmeg was founded in 2012 with the goal of changing the traditional wealth management industry by providing low-cost automated financial planning services. While it quickly became one of Britain’s well-known financial technology companies and robo-advisers, it has yet to turn a profit.
JPMorgan confirmed the acquisition, noting that it will complement the company’s planned launch of a digital bank in the UK under the 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 Mr. Sanoke Viswanathan, CEO of international consumer at JPMorgan Chase.