JP Morgan buys fintech Nutmeg for $1B 🀟

JP Morgan buys fintech Nutmeg for $1B 🀟

JP Morgan acquired UK based online investing and consumer finance platform Nutmeg, for $1 billion – in one of the largest deals for a fintech by an old school bank.

Nutmeg sells β€œmanaged” investing products, like a robo advisor, retirement savings, as well as options to buy stocks, bonds and ETFs, for 140K users, with over $5 billion assets under management, and is actually one of the hottest fintech platforms gaining traction in the UK, alongside Starling, Monzo and Revolut.

For JP Morgan, it's an odd yet fitting purchase β€” odd because JP Morgan already has a consumer investing operation through its subsidiary Chase bank, and fitting because JPM is actively building a neobank of its own (like Goldman’s Marcus) which is due to launch this year, and Nutmeg gives them access to a ready made base ripe for frontier testing.

Big picture β€” banks will increasingly be found waiting on the sidelines for disruptive consumer fintech startups to dish it out amongst themselves, and then quietly scooping them up in due time (with their thick wads of cash). Much better operating strategy than competing from ground zero.

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