US Largest Bank JP Morgan Acquires UK Fintech Firm... Strong Drive in Overseas Consumer Finance

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The largest bank in the United States, JP Morgan Chase, has acquired Nutmeg, a UK-based online asset management service provider. By acquiring a company from the UK, the birthplace of fintech, JP Morgan plans to expand its retail banking operations beyond the US.

According to CNBC on the 17th (local time), JP Morgan announced that it had reached an agreement to acquire Nutmeg. Although the acquisition amount was not disclosed, the industry estimates Nutmeg's value at 700 million pounds (approximately 1.107 trillion KRW).

Sanoke Biswas, CEO of JP Morgan's International Consumer Finance Division, stated, "We are building JP Morgan Chase in the UK using the latest technology," adding, "We look forward to continuing to support innovative work in the retail asset management sector."

Founded in 2012, Nutmeg is the largest online investment management platform in the UK. Utilizing robo-advisors, it manages assets for 140,000 customers and oversees more than 3.5 billion pounds (approximately 5.5351 trillion KRW). It offers a variety of products ranging from Individual Savings Accounts (ISA) to pensions.

This deal comes just a few months after JP Morgan announced a partnership with Nutmeg in November last year to provide exchange-traded funds (ETF).

Industry observers view this acquisition as a move by JP Morgan to gain an advantage over competitors such as Goldman Sachs.

This is not JP Morgan's first fintech acquisition. In December last year, JP Morgan acquired 55ip, a Boston-based startup that helps automate the construction of tax-efficient portfolios.