The goal is to create an independent digital bank in the UK
According to a number of professional media reports, Bank of America JPMorgan Chase announced on Thursday that it has reached an agreement to acquire Nutmeg, a British investment platform, aimed at creating an independent digital bank in the UK.
Sanoke Viswanathan, executive director of JPMorgan’s International Consumer Division, said in a statement that the financial group is “from scratch, using the latest technology to build Chase in the UK”, focusing on the consumer experience.
“We look forward to bringing their famous products alongside ours and continuing to support their innovative work in managing the wealth of small investors,” Viswanathan added, referring to nutmeg.
The agreement was reached a few months after the two companies announced the establishment of an association, through which the United Kingdom will provide an index fund (ETF, abbreviation) created by the largest bank in the United States by assets.
Nutmeg CEO Neil Alexander pointed out: “Customers should expect the same level of transparency, convenience and service that will help us become a leader in digital wealth management in the UK.”
Both companies explained that due to different regulatory requirements in the UK and the rest of Europe, the financial group chose to buy nutmeg, which was created ten years ago, instead of using technology already developed in the United States.
Nutmeg manages an asset portfolio of 4.9 billion assets and is one of the largest automated investment advisors in the UK, offering a wide range of investment and savings portfolios.