Edinburgh-based Nude Finance has been acquired by London-based digital mortgage brokerage company Tembo Money.

The acquisition will allow Tembo to offer customers Nude’s Lifetime ISA and Nude customers will in turn be able to take advantage of Tembo’s mortgage brokering service from within the Nude app.

The deal, approved by the Financial Conduct Authority (FCA), means that Tembo will acquire all of Nude’s shares, and Tembo’s chair, Jenny Watts, will assume the same role for the Nude Finance Board. Richard Dana, CEO of Tembo, will manage Nude, and Crawford Taylor, Nude’s CEO, will step down, but continue to offer advice to the team.

Richard Dana, founder and CEO at Tembo, said: “We’re delighted to now be able to offer our customers access to an award-winning savings product. Crawford and his brilliant team have built an engaged and loyal customer base of future first-time buyers and we look forward to continuing to grow and develop the business in the future.

“We’ve already been working with Nude over the past year and there is huge synergy in helping savings customers as they navigate the mortgage and homebuyer process. The broader Tembo proposition puts home at the heart of personal wealth – for most people and their families their most treasured and valuable asset.”

Nude currently has around 20,000 active customers, and Tembo expects this number to grow with their acquisition.

Crawford Taylor, Founder and CEO at Nude, added: “I started Nude to make a difference in people’s lives. Nude is a financial friend that’s really good with money, who’s there 24/7. The Nude team has built a unique proposition that is resonating in the market, changing the way people interact with the financial system.

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“Nude helps people set a goal, engaging and motivating them and being with them every step of the way, starting with home ownership. Tembo has a very similar approach centred around home ownership and the acquisition is a perfect fit led by three very talented founders.”