NATWEST Group, owner of Royal Bank of Scotland, has acquired a majority shareholding in a workplace savings and financial technology firm for £144 million.

The bank said its purchase of an 85 per cent stake in Cushon will allow it to provide a workplace pensions and savings proposition to commercial customers and its staff.

Cushon’s main products are its workplace ISA (individual savings account) and master trust pension, which NatWest said offers an investment strategy designed to drive down the financed CO2 emissions of customers’ investments. It also offers junior and lifetime ISAs and a general investment account.

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Cushon’s management will retain 15% of the company further to the deal, which remains subject to regulatory approval.

Alison Rose, chief executive of NatWest, said: “By combining the scale, experience and expertise of NatWest Group with Cushon’s innovative workplace savings and pensions products, this acquisition allows us to enhance our services to commercial customers and support the financial wellbeing of their staff.

“Core to our purpose-led strategy is supporting customers at every stage of their lives, and by entering this fast-growing market we are equipping ourselves with the tools to develop a proposition which responds to our customers’ changing needs whilst delivering value-driven sustainable growth and returns.”

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Peter Flavel, chief executive of NatWest’s wealth businesses, said: “As a workplace savings disrupter, Cushon will help NatWest Group achieve its strategic, purpose-led vision of helping customers save for tomorrow. On average, UK employees are due to outlive their savings by 10 years and we are committed to helping reduce this savings gap.

“We believe Cushon’s engaging, app-first pension will help customers by moving their pension and workplace savings schemes from a compliance burden to an employee benefit.”

Ben Pollard, chief executive and co-founder, Cushon, said: “This is the next exciting chapter for a great British fintech as we join forces with a great British bank. Becoming part of NatWest Group will accelerate our plans for further technology-led innovation to improve the UK's financial wellbeing.

“Together, we look forward to driving more positive change in workplace savings and pensions. Cushon’s cutting edge technology and socially responsible investment funds will allow even more UK savers to benefit from a convenient, great value way to save; and understand the positive impact their life-long savings can have on issues that matter, such as climate change.”

NatWest remains 45.97% owned by UK taxpayers.