Holding company and fintech incubator Tifin Group announced two acquisitions on Wednesday: risk profile company Totum Risk and the personal financial planning offered by myFinancialAnswers.
Although the terms of the contract were not disclosed, Vinay Nair, CEO of Tifin, said the assets of both companies would help accelerate the adoption of the group’s own risk and financial planning solutions.
“These were really skill acquisitions. We really wanted the computation engines built into each to accelerate our development, but we’re working on separate offerings for each,” said Nair.
Nair spawned three of Tifin’s better-known startups, saying companies partnering with Magnifi, Positivly and Clout were looking for the opportunity to add features to further personalize the risk and specific financial situation of an individual investor.
He said the move to acquire the two companies also fits in with the trend towards a demand for modularity in the industry. While some companies want the tools that the Tifin Group developed à la carte, others wanted them to integrate with existing technology or other partners.
“Our vision is really to create a personalized advisory platform for growth, not practice management, efficiency or time savings,” said Nair.
“We see Clout as a marketing platform for growth through better engagement. Magnifi growth through commitment to investment; Positive as EFG or “Commitment to Growth” through personalization, ”he said.
Nair added that the tech stacks of the two new offerings had been rewritten and fully integrated with each other in the months leading up to the official announcement.
That work was done by a team called Tifin Integrated, which Nair says operates like a separate fintech company. There are currently four developers working on these projects. However, he assumes that the team will grow and also take on integration work for partners.
Tifin herself has grown to 120 full-time employees in the nine startups in two offices in Boulder, Colorado, where the majority of the team works. There are also team members in New York and India, with others coming soon from Boston and San Francisco.
Totum Risk will keep its name as part of Tifin, but myFinancialAnswers will be given an as-yet-to-be-announced new nickname. Each firm’s CEOs – Larry Shumbres of Totum and Ben Pitts of myFinancialAnswers – will join the Tifin Group and, according to Nair, “will remain an integral part of both new projects”.
Totum is currently used by more than 120 consulting firms and these relationships would be maintained although prices for its application would be tightened in the future. In December, one of Tifin’s tax optimization providers 55ip was acquired by JP Morgan Asset Management for an undisclosed amount.