The release stated 55ip will still operate as its own separate company, but it will have the “full support” of J.P. Morgan.
55ip, which has been operating for nearly five years, works in automated tax technology, and Founder and Executive Chairman Dr. Vinay Nair said in the release that the company “combines investment intelligence and modern technology to provide personalized and automated investment solutions with a focus on reducing barriers investors face.”
“Tax-related savings are first order, especially in a world with lower rates, lower returns and higher taxes,” he said, according to the release.
Nair will stay on as a consultant and special advisor to J.P. Morgan Asset Management, the release stated.
George Gatch, CEO of J.P. Morgan Asset Management, said the purchase had been necessary because of the needs of advisors who are “increasingly seeking intelligent, automated tools to provide simplicity, scale and efficiency.”
“[A]nd by acquiring 55ip we are accelerating our significant investments in advanced advisor technology,” he said, according to the release, adding the development signifies “collaboration between FinTech and asset managers, aimed toward improving capabilities and outcomes for advisors and their clients.”
Sridhar Kanthadai, APAC head of wholesale payments at J.P. Morgan, spoke with PYMNTS last month about the digitization of treasury departments, which need to modernize in the face of the pandemic by streamlining how cash is handled and more.
Kanthadai said the important factor is not just to add electronic processing.
“The way we think about digitization is in a more holistic fashion, whether it’s the onboarding of clients, whether it’s the connectivity with clients, whether it’s the transaction management with clients, or even the servicing piece,” Kanthadai said.