J.P. Morgan and TIFIN partner to push wealthtech's AI evolution: Wealthtech Weekly

July 27, 2023 5:18 PM

J.P. Morgan is throwing its support and its funding behind TIFIN as the wealth technology firm works to develop its second cohort of AI-powered fintech companies.

On Thursday, J.P. Morgan and TIFIN announced the launch of TIFIN.AI, an initiative described as a "thematic innovation platform designed to launch companies that provide B2B AI assistants for better wealth outcomes."

Targeted AI use cases include client portfolio insights for advisors, alternative investing, wealth management in the workplace and insurance. Operating as a subsidiary within TIFIN, TIFIN.AI will be directly overseen by TIFIN's founder and CEO Vinay Nair.

The establishment of TIFIN.AI builds on the success of TIFIN Studios, a previous development initiative that birthed five companies between 2018 and 2021.

The first iteration of Studios included J.P. Morgan's acquisition of tax management software firm 55ip in 2020; the spin-off of Paralel Technologies; and the foundation of TIFIN's Magnifi, TIFIN Wealth and TIFIN AMP subsidiaries.

"J.P. Morgan and TIFIN's collaboration underscores our shared commitment to innovation, and shared belief that AI will not only reshape the financial services landscape, but accelerate the next era of innovation and efficiency," Ted Dimig, global head of wealth management advisory solutions at J.P. Morgan, said in a statement. "We are delighted to see this next iteration of TIFIN Studios as an energizing step forward in the creation of cutting-edge financial technology."

Leaders from both companies say TIFIN.AI embodies their shared common vision that AI is set to become an integral component of every wealth and asset management interaction.

Company categories listed on the TIFIN.AI website indicate a desire to develop three specific ideas during this cohort: an AI-powered co-pilot to deliver client portfolio insights for wealth managers; an AI assistant for the adoption of alternative investments within wealth enterprises; and an AI assistant-centric platform for employee benefits and advice.

"At TIFIN it is our mission to deliver impact through innovation at speed," Nair said in a statement. "The Studios model is deeply ingrained in our DNA and we are proud to have built a platform to help accelerate the future.

"I am excited to collaborate with talented and visionary employees and apply the tremendous innovation in AI to change financial outcomes for individuals through the companies that we create and launch."

This is the second TIFIN.AI announcement made in recent weeks as the effort builds momentum. In late June, TIFIN and global private markets investment firm Hamilton Lane unveiled their plans to roll out an AI investment assistant for private markets

Believed to be the first of its kind, the AI assistant will be available as an API and is intended for integration within the wealth platforms and digital marketplaces used by advisors and investors allocating to the private markets.

The investment assistant will provide data-centric information around private markets benchmarking, forecasting and diligence. Officials hope to educate private wealth investors and their intermediaries on the asset class and current trends within the private markets.

Scroll down to get caught up on other recent fintech news you might have missed in our Wealthtech Weekly recap. And check out the previous edition here.

iCapital launches portfolio construction tool

New York-based fintech iCapital is celebrating the launch of a new portfolio construction tool that is designed to help financial advisors to build personalized client portfolios that incorporate alternatives and structured investments.

Called Architect, the tool lets advisors evaluate alternatives and structured investments alongside traditional assets and design portfolios that align with their clients' return objectives and risk profiles.

The tool includes resources for evaluating historical performance and running institutional-quality risk factor analyses.

"Advisors have long expressed a need for more comprehensive tools to effectively evaluate the inclusion of alternatives and structured investments in client portfolios," said Lawrence Calcano, chairman and CEO of iCapital, in a statement. "These investments have been the blind spot in many portfolio construction offerings.

"The needs of our clients are evolving and so should their tools."

Dick Pfister, CEO of AlphaCore, a La Jolla, California-based advisory firm with $2.4 billion in assets under management, said his advisors have been using Architect to analyze and explain how the inclusion of alternative strategies can diversify and strengthen client portfolios.

"The ability to both visualize the potential return, and stress test the risk/reward characteristics of adding unique alternative assets, is a major differentiator," he said in a news release.

Savvy Wealth unveils AI-powered advisor platform

Technology-focused RIA startup Savvy Wealth has released an advisor platform built on generative AI that includes a proprietary CRM system, client portal, marketing automation and compliance support.

The new platform automates and streamlines processes like new account onboarding, client portfolio recommendations, ongoing financial planning and personalized communications across multiple marketing channels.

Supported by Savvy Wealth's proprietary AI-powered CRM, it caters to advisors serving high net worth clients, providing them with the necessary software and tools to customize service offerings and strengthen client relationships.

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Tech-first RIA startup Savvy Wealth aims to make financial technology work for humans

Savvy CEO Ritik Malhotra said with many "all-in-one" wealth platforms failing to catch fire among advisors, his team saw an opportunity to change that narrative and build a fresh solution from the ground up.

"Listening to our advisors, we designed our platform to eliminate the challenges caused by fragmented technology, double data entry and manual workflows that have historically plagued advisors and hindered their growth," Malhotra said in a statement.

eMoney Advisor announces leadership team changes

Two women who have been part of the eMoney Advisor family for years now hold new positions in the firm's C-suite.

The financial planning software developer, part of Fidelity Investments, has named Megan Murray, formerly senior vice president of marketing, to the position of chief operating officer. Rachel Eccles, formerly senior vice president of marketing, has been promoted to head of marketing.

Both Murray and Eccles will continue to serve as members of eMoney's core leadership team, reporting directly to CEO Susan McKenna. McKenna, who first joined the eMoney team in 2018 and was named CEO last summer, succeeds Ed O'Brien, who served as eMoney CEO for six years.

In March 2022, the company announced that O'Brien was stepping down and heading to Fidelity as head of technology for Fidelity Institutional. He remains a member of eMoney's Board.

Serving as head of finance since 2015, Murray has guided the accounting and finance functions, enterprise operations and facilities management for eMoney. Eccles joined eMoney in 2017 as director of content and worked to drive eMoney's brand awareness and demand generation efforts with a focus on impacting revenue growth.

"I'm thrilled to announce the promotions of Megan and Rachel and grateful for their contributions to eMoney. I'm eager to witness the progress they will make as COO and head of marketing, respectively," McKenna said in a statement.