Cheat sheet: JPMorgan acquires investment app Nutmeg
- JPMorgan acquired Nutmeg as it prepared to launch a digital bank in the U.K.
- Nutmeg makes investment decisions for customers based on an algorithm.
Mid-June, JPMorgan announced that it was acquiring Nutmeg, a wealth management fintech, in preparation to launch its Chase digital bank in the U.K. later this year.
Details:
- While JPMorgan and Nutmeg have kept the financial terms of the agreement hush hush, Reuters pegs Nutmeg’s purchase close to $1 billion.
- If accurate, that works out to be about $7,000 per customer for a company with just around 220 employees.
- JPMorgan and Nutmeg previously partnered together on Nutmeg’s Smart Alpha investment portfolios in November 2020.
“Nutmeg’s customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the U.K.,” says Neil Alexander, CEO of Nutmeg, in a press release. “I am truly impressed with the digital experience that Chase is building for the U.K., and this new chapter in our story will see Nutmeg’s customers benefit from a wider range of products and services in the future, and allow us to expand into new markets.”
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