JPMorgan buys digital wealth app Nutmeg as it preps UK launch

JPMorgan Chase has acquired U.K. robo-adviser Nutmeg as it prepares to launch a digital banking offering in Britain later this year.

Why should we care?
With Nutmeg, which was acquired for an undisclosed sum, JPMorgan Chase can strengthen its offerings for U.K. customers and go head to head with Goldman Sachs, which rolled out its Marcus retail banking product suite in the U.K. in 2018. Marcus has since picked up $30B in U.K. deposits, and Goldman plans to launch a robo-adviser next year. Nutmeg currently has 140,000 accounts and $4.9B in assets under management. JPMorgan Chase CEO Jamie Dimon previously indicated that the company would be “much more aggressive” in looking for acquisitions as it seeks to maintain a competitive position alongside rival banks and fintechs. Through its Nutmeg acquisition, the bank is buying a technology stack and eliminating the need to build investment technology for an entirely new market with different regulatory requirements. In rolling out its U.K. product suite, the U.S. megabank will need to hold its own among a sea of digital-first challenger banks, including Monzo, Revolut, and Starling. “We are building Chase in the U.K. 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,” Sanoke Viswanathan, CEO of international consumer at JPMorgan, said in a statement.