Pensionbee says it has made steady progress on its plans to expand into the US as it looks to tap into the world’s largest defined contribution pension market.
The London-listed firm first stated its intentions to break into the US market in March, announcing it had entered into a strategic relationship with “a large, US-based global financial institution”.
The company said in a statement this morning that it has now “entered into a final binding agreement”, with the American financial services firm – a deal that is still subject to regulatory approval.
Romi Savova, the company’s chief executive, said the firm was “pleased to have taken this important next step” towards launching in the US.
Pensionbee declined to name the firm when contacted by City A.M.
Given the context of the “enormous US market” – which represents approximately 80 per cent of the global total defined contribution market and $22.5 trillion in assets – the company said it saw huge potential for its new US business “to grow rapidly” and become “at least the size of its growing UK business over the next decade”.
In the UK, Pensionbee has approximately £4.9bn in assets under administration on behalf of 240,000 customers. The firm said it aims to continue to grow in the UK too, and hopes to take on one million customers over the next 5-10 years.