This acquisition will help JPMorgan Chase enter the retail banking market in the UK. Here are the top-line bullets you need to know.
Who are the parties to the deal?
- Nutmeg: UK-based Nutmeg is a digital wealth management company with $4.9B in assets under management (AUM). The company has over 140,000 clients and saw a 70% growth in AUM year-over-year. Nutmeg previously partnered with JP Morgan Asset Management in November 2020 to provide exchange-traded funds (ETFs) to Nutmeg’s customers.
- JP Morgan: New-York based JP Morgan is a financial investment bank with over $2.6T assets under management (AUM). The company is present across 100 global markets and has over 250,000 employees. The company reported a revenue of $32.3B in Q1’21.
Why does the market matter?
JP Morgan wants to strengthen its foray into the UK digital banking space where:
- The wealth management platform market is projected to grow at a CAGR of 13.4% to reach a value of $3.2B by 2022, according to Markets and Markets.
- Growing digital adoption due to the pandemic, an increase in first-time investors, and adoption of alternative investment platforms have all attributed to industry growth.
- The wealth technology space has gained investor momentum, raising $3.4B in 2020.