PensionsDec 12 2017

PensionBee uses funds to attract banks

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PensionBee uses funds to attract banks

PensionBee, the fintech pension provider, will be offering a white-label pension consolidation product to banks and life companies, after receiving fresh funds from a new shareholder.

Asset manager State Street Global Advisors (SSGA) announced today (12 December) that it has taken a minority equity stake in PensionBee. Details about the value of the stake were not disclosed, however.

Romi Savova, chief executive of PensionBee, told FTAdviser that the goal of the deal is to support the company’s growth.

Lauched in 2016, PensionBee allows savers to combine multiple pots into one online pension account.

However, after the new funding, the provider will be looking to enter larger corporate deals where it can offer its “pension consolidation service to be consolidated into their own pension products,” Ms Savova said.

She said: “We are already in discussions with some banks and some life companies about it, and we will be speaking to more. It is now quite high in our agenda to progress this business plan.”

Currently, PensionBee already has a partnership with app-based bank Revolut and national newspaper The Telegraph, which are offering the provider services.

According to Nigel Aston, global head of defined contribution proposition and strategy for SSGA, the asset manager and the pension provider “share the common goal of wishing to help ordinary people make sense of the complexity of their retirement”.

He said: “We are really looking forward to working even more closely together as we enter the next stage of our partnership.”

The provider has also been developing its own service. Last August, it launched a drawdown service for people who do not have an adviser to consolidate and draw an income from their retirement nest eggs.

maria.espadinha@ft.com