JPMorgan acquires Nutmeg in bid for share in UK retail market

Karthik Subramanian

JPMorgan Chase has acquired the British digital wealth manager Nutmeg in what is seen as a push to enter the UK retail banking and wealth management market.

JPMorgan Chase

The US bank is looking to follow its rival Goldman Sachs which made its entry into the UK banking market with the consumer brand Marcus which was launched in 2018. Goldman has been looking to shift its focus to wealth and investments through Marcus in the UK and offer Robo-advisor services as well next year. It would be interesting to see how these two US banks fight out for the market in the UK.

“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 Sanoke Viswanathan, CEO of the international consumer at JPMorgan Chase.

Though Nutmeg was started in 2012, it has managed to acquire only around 140,00 clients so far. But as we enter the digital age and automation of financial services is gaining traction, Nutmeg’s suite of automated advisory and financial products might just come in handy for JPMorgan. Though the current clientele of Nutmeg is small, it helps the bank to gain a foothold in the UK banking industry which it would then hope to piggyback on and push ahead.
Nutmeg is yet to turn into profit and as per its full accounts in 2019, it made a pretax loss of around 22 million pounds. Though the details of the acquisition have not been revealed, Reuters reports that the deal could be valued at around 700 million pounds.
“I don’t think this is a major spend and it gives them a quick leg up in the marketplace in the UK,” said Chris Skinner, CEO of financial technology research firm The Finanser.
It all now comes down to how JPMorgan is going to execute its UK strategy. It is clear that the bank is looking towards wealth management as one of the key products for the UK market and with digital banking poised for huge growth in the coming years, it is important for the bank to realise the change in dynamics in the industry and continue the push towards automation and digitalisation with its range of products.
  • Read this next

    Digital Assets

    Shiba Inu Enhances Privacy & Security with New Encryption

    SHIB, the force behind the Shiba Inu cryptocurrency, today introduced Fully Homomorphic Encryption (FHE) into its platform, ensuring unmatched data protection for its users.

    Digital Assets

    Binance Broadens Its VIP Invitation Program for Traditional Asset Traders

    Step Into the Future of Trading: Binance Invites Traditional Asset Traders to Join Its Exclusive VIP Program

    Digital Assets

    Algotech Presale Revolutionizes DeFi Scene, Surpassing $1 Million Raised in Just Weeks

    Emerging Cryptocurrency trading platform Algotech (ALGT) known to be famous with its cutting-edge features. The TradFi platform features advanced algorithms to provide a competitive edge to traders. 

    Fintech

    Revolut enables direct transfers from Singapore to Bangladesh and Kenya

    British fintech firm Revolut has broadened its array of services with the introduction of the “Mobile Wallets” feature in Singapore, facilitating direct money transfers to Bangladesh and Kenya.

    Digital Assets

    SBF claims “zero loss” to FTX customers, 100-year sentence is “grotesque”

    Sam Bankman-Fried, the former FTX CEO who was found guilty of fraud charges last year, is facing his sentencing next month. But before that day arrives, he’s making a plea for what he considers a fair shake.

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    Industry News

    ‘WTF’ as in ‘What The Fraud?’, Sumsub’s new podcast on digital fraud

    “We found a lack of informative podcasts talking about digital fraud threats and prevention for business owners. So, we decided to dive in and share our expertise along with industry top minds in the ‘What The Fraud?’ podcast.”

    <