Online pension provider PensionBee announces US expansion plan
UK-based online pension provider PensionBee has announced it has entered into an exclusive, non-binding term sheet with an unnamed US financial organisation in an attempt to expand its operations into the US.
PensionBee to expand into the US market
Described as a “transformative step” for the firm by company CEO Romi Savova, PensionBee hopes its US operations will match or exceed the scale of its UK business within the next decade, adding that the US defined contribution pension market is the largest in the world.
PensionBee says its technology will enable US customers to consolidate and transfer their employer-sponsored defined contribution retirement plans into a new Individual Retirement Account (IRA).
The deal, which is subject to regulatory approvals, is expected to be completed in late 2024 and will see the UK organisation deliver its US service through PensionBee Inc, to be established in Delaware with headquarters in New York.
The UK fintech says that it will manage the operations of its US arm, including the recruitment of a local team, while its US partner will provide its knowledge of the market and “substantial marketing funding”.
Founded in 2014, PensionBee offers its UK customers several pension investment plans, including impact investing and fossil fuel-free options. The firm claims to serve over 250,000 customers, with £4.4 billion in assets under administration as of the end of 2023.
PensionBee joins a cohort of UK firms venturing into the US market, including embedded finance platform Liberis and Atlantic Money, which is gearing up to introduce its fixed-fee money transfer services to both North America and Australia.
