LONDON — JPMorgan Chase said Thursday it has agreed to buy British online investment management platform Nutmeg for an undisclosed sum. The U.S. ban

JPMorgan is buying UK robo-advisor Nutmeg to boost overseas retail banking expansion

submited by

Style Pass

2021-06-17 17:30:05

LONDON — JPMorgan Chase said Thursday it has agreed to buy British online investment management platform Nutmeg for an undisclosed sum.

The U.S. banking giant said the deal, which is still subject to regulatory approval, would complement its plans to launch a standalone digital bank brand in the U.K. later this year.

With more than £3.5 billion ($4.9 billion) in assets under management, Nutmeg is one of the U.K.'s largest robo-advisors. The company offers a range of investment accounts, including ISAs, pensions and general investment accounts. Rivals include the likes of Wealthsimple, Moneyfarm and Moneybox.

JPMorgan CEO Jamie Dimon said last year that he would be "much more aggressive" in searching for acquisitions to help the biggest U.S. bank by assets add capabilities. He may have been motivated by the deals that rival Morgan Stanley has made in recent years – spending $20 billion to snap up E-Trade and Eaton Vance.

By striking out a digital-first effort in the U.K., the bank can expand outside the U.S., where it has an extensive network of physical branches and leading positions across retail and institutional businesses. Those efforts could eventually be applied beyond the U.K., the bank has said previously.