U.K.-based online pension provider PensionBee is set to embark on a significant expansion into the U.S. market through an exclusive, non-binding term sheet with an undisclosed U.S. financial organization. CEO Romi Savova deems this move a "transformative step," expressing ambitions for the U.S. operations to rival or surpass the scale of its successful U.K. business within the next decade. With the U.S. holding the world's largest defined contribution pension market, PensionBee plans to leverage its technology to enable American customers to consolidate and transfer employer-sponsored defined contribution retirement plans into a new Individual Retirement Account (IRA).
The deal, contingent on regulatory approvals, is slated for completion in late 2024. PensionBee's U.S. service will be delivered through PensionBee Inc., to be established in Delaware with its headquarters in New York. While the company will manage the operations and oversee the recruitment of a local team, the U.S. partner will contribute market expertise and substantial marketing funding. Founded in 2014, PensionBee presently serves over 250,000 U.K. customers, managing £4.4 billion in assets under administration as of the end of 2023. This strategic expansion follows a trend of U.K. firms venturing into the U.S. market, reflecting the global appeal of fintech innovations.
