T. Rowe Price is getting nimbler in an effort to transform its full-service retirement recordkeeping business by expanding its relationship with fintech leader FIS.
Baltimore-based T. Rowe Price Group, Inc. today announced plans accelerate the transformation of its recordkeeping by handing over responsibility for managing retirement technology development and core operations to FIS, which serves some of the industry’s largest recordkeepers and provides the technology platform for 50 million participants and over $3 trillion in assets.
“The retirement industry demands state-of-the-art solutions in response to evolving plan sponsor, advisor, and participant expectations. FIS has been a trusted partner for over 30 years and deepening our relationship with them allows us to build on the strengths of both organizations while becoming nimbler and maintaining our place as a premier workplace retirement provider,” said Kevin Collins, head of retirement plan services, T. Rowe Price. “By aligning our investment management capabilities and well-regarded high-touch service with their cutting-edge fintech and retirement operations, we get the best of both worlds. This will accelerate our delivery of innovative solutions and compelling digital experiences designed to span employee needs, spur participants to act, and maximize value for plan sponsors.”
As a result, about 800 T. Rowe Price operations and technology associates are being offered the same roles with FIS that they have today, with the transition effective August 1, 2021. The transitioning associates will remain in the current Owings Mills, Md., and Colorado Springs, Colo., facilities and continue to serve the T. Rowe Price account and clients.
“Providing the best experience that we can for our transitioning associates has been a top priority for everyone involved in this decision, and we are pleased that they can all move to FIS in the same roles and in the same location they are today, supporting our clients,” said T. Rowe Price CEO Bill Stromberg.
The move to deepen the partnership follows an extensive strategic review of the business. In a statement, T. Rowe Price said taking advantage of FIS’ scale and extensive experience in retirement technology and operations while focusing on its own strengths in investment management and client service advances T. Rowe Price’s strategy to grow its defined contribution business in a scalable and efficient manner.
“We believe we are at a point where the industry is ripe for significant change in how retirement offerings are delivered,” said Dee Sawyer, head of individual investors & retirement plan services, T. Rowe Price. “Expanding our partnership with FIS will keep us ahead of new trends and position T. Rowe Price for ongoing industry leadership, enabling us to influence fintech development and inform a new way of doing business that has the potential to become a standard for the industry over the next 20 years.”
Leveraging FIS’ expertise in fintech and service delivery, along with their significant investments in their retirement business, will enable T. Rowe Price to provide additional retirement income experiences; new financial wellness and digital payment capabilities; and incorporation of the latest in artificial intelligence, automation, and robotics technology.
These enhancements, T. Rowe Price says, will be delivered while staying focused on ensuring there is no disruption to plan sponsors or participants. Because T. Rowe Price already uses FIS’ recordkeeping platform, there will be no conversion or transition for any clients.
“We are excited to take our long-standing relationship with T. Rowe Price to the next level,” added Brian DuVal, head of wealth and retirement, FIS. “As two forward-looking organizations, we are leaning into our core strengths to bring new, innovative retirement capabilities to the industry.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
