Member Exclusive

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.
close

Email a Friend

Cheat sheet: JPMorgan acquires investment app Nutmeg

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.”

Nutmeg

Founded in 2012, Nutmeg is a robo-advisor with a customer base that has grown to 140,000 with $4.9 billion of assets under management. While Nutmeg has yet to make a profit, robo-advising is expected to become a $1.2 trillion industry by 2024. 

Nutmeg began as a pure robo-advisor, offering ISAs, pensions, and general investment accounts. Nutmeg made investments in ready-made portfolios on behalf of the customer based on its proprietary algorithm. Nutmeg launched general investment accounts, and its stocks and shares ISA in September 2012. The wealthtech grew its product line-up slowly over the years, offering pensions in February 2015, fixed allocations in January 2017 and a Lifetime ISA in April 2017. It also eventually added a Junior ISA. 

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Cheat sheet: JPMorgan acquires investment app Nutmeg”

Member Exclusive

With Extend partnership, Amex wants SMBs to create more virtual cards

  • American Express has teamed up with Extend to launch a virtual card solution for its small business customers.
  • Virtual cards provide security and flexibility for SMBs and can help them improve cash flow.
Ismail Umar | October 12, 2021
Member Exclusive

Buy now, regret later? The tricky relationship between BNPL and credit ratings

  • As BNPL use has surged through the pandemic, consumers’ credit scores have taken a significant hit.
  • Research shows more than a third of BNPL users have fallen behind on their payments and hurt their credit score.
Ismail Umar | October 05, 2021
Member Exclusive

The strange connection between horoscopes and financial advice

  • A person’s horoscope may not determine their future wealth, but a propensity to read their horoscopes might.
  • A survey by N26 found that quite a few US adults count on their horoscopes for financial guidance here and there.
Rivka Abramson | September 28, 2021
Member Exclusive

‘There’s a two-sided integration going on between fiat and crypto’: How banks are gearing up to move into digital currencies

  • Many banks are starting to incorporate digital assets into their services.
  • Further adoption will depend on how federal agencies perceive and regulate the large-scale use of cryptocurrencies.
Ismail Umar | September 24, 2021
Member Exclusive

Cheat Sheet: What’s going on behind Goldman Sachs’ acquisition of BNPL GreenSky?

  • Goldman Sachs has acquired BNPL firm GreenSky for $2.24 billion, with the transaction expected to finish by Q4 2021 or Q1 2022.
  • GreenSky's platform and team will be integrated with Marcus by Goldman Sachs.
Subboh Jaffery | September 21, 2021
More Articles