T. ROWE PRICE PARTNERS WITH ASCENSUS ON 529 BUSINESS
T. Rowe Price has announced a partnership with Ascensus to enhance the experience for 529 plan account owners. T. Rowe Price will remain the investment and program manager for its state-sponsored 529 plans, while Ascensus, with its extensive servicing technology and expertise, will handle recordkeeping and account servicing. This collaboration aims to offer account owners an improved online and mobile platform, an enhanced gifting platform, and seamless electronic payments to over 800 educational institutions. The partnership leverages Ascensus' track record in 529 administration, which supports 6.5 million savers with over $200 billion in assets. T. Rowe Price manages education savings for over 675,000 account owners.
- T. Rowe Price continues as investment and program manager for four highly successful 529 plans.
- Ascensus, the largest 529 plan recordkeeper, will handle recordkeeping and account servicing.
- Ascensus supports 6.5 million 529 plan savers with over $200 billion in assets under administration.
- The partnership aims to enhance the online and mobile experience for 529 plan account owners.
- An enhanced gifting platform is introduced for secure and simple contributions from others.
- Account owners can seamlessly send electronic payments to over 800 educational institutions.
- T. Rowe Price manages education savings for over 675,000 account owners.
- Ascensus' advanced technology and mobile capabilities are now accessible to T. Rowe Price's clients.
- The partnership is expected to streamline customer service and improve user experience.
- No immediate financial data or revenue impact from the partnership is provided.
- Potential risks if Ascensus' technology or service fails to meet high standards expected by clients.
- Dependence on Ascensus' recordkeeping and servicing could pose a risk if Ascensus encounters operational issues.
Insights
The partnership between T. Rowe Price and Ascensus is likely to have a positive impact on both companies by enhancing service offerings for 529 plan customers. Given that T. Rowe Price manages over 675,000 accounts in its four state-sponsored 529 plans, the improved account servicing and mobile capabilities provided by Ascensus could lead to better customer retention and growth in new accounts. Improved technology can often translate into higher customer satisfaction and reduced operational costs. It's also beneficial for T. Rowe Price, as it allows them to focus on investment management while Ascensus handles the administrative burden.
From a financial perspective, this partnership could contribute to increased assets under management (AUM) for T. Rowe Price as satisfied customers might invest more and new customers might be attracted by the enhanced service offerings. This could translate into higher fee income for the company over the long term. Short-term gains might include a bump in stock price due to positive investor sentiment around the partnership announcement.
However, investors should also consider potential risks, such as integration challenges or any unforeseen costs associated with the enhanced technology platform. Overall, the strategic alignment leverages both companies' strengths and provides a robust value proposition for customers.
The 529 education savings plan market is highly competitive, with many players vying for market share. The collaboration between T. Rowe Price and Ascensus could set a new standard in this arena by combining top-notch investment management with state-of-the-art recordkeeping and customer service technology. This move aligns with the growing trend of digital transformation in financial services, catering to increasingly tech-savvy customers who demand ease of access and user-friendly interfaces.
The dedicated app and enhanced gifting platform are particularly noteworthy, as they address key customer pain points by simplifying account management and contributions from family members. This could make T. Rowe Price's 529 plans more attractive compared to other options in the market. Furthermore, the ability to send electronic payments to over 800 educational institutions adds an additional layer of convenience that could appeal to a broader audience.
Nonetheless, it remains to be seen how effectively these new features will be implemented and adopted by users. Market perception and customer reviews will be important in determining the long-term success of this partnership.
Partnership bolsters 529 account owners' experience with core investment and servicing capabilities from two leading firms
T. Rowe Price selected Ascensus because of its industry-leading servicing technology and expertise in helping millions of people save in 529 plans. Ascensus is the largest recordkeeper and third-party administrator of state-sponsored education savings programs in
"Ascensus' long track record of success and scale in 529 administration and customer service made them the clear choice to serve our 529 clients," said Phil Korenman, Head of the Individual Investors division at T. Rowe Price. "This partnership complements and expands our servicing capabilities and it will deliver an enhanced experience for account owners. We share a passion for instilling confidence in the families we help in pursuit of their education savings goals."
This partnership will provide 529 plan account owners with an improved online platform and mobile experience, while maintaining the same strong investment management and level of security that keeps their personal information safe. Benefits include:
- A dedicated mobile app experience specifically designed for 529 plans that will allow account owners to manage their account anywhere, anytime.
- An easy-to-use website and app offering personalized features designed to drive outcomes and simplify the customer experience.
- An enhanced gifting platform with a simple and secure way for others, such as grandparents, to contribute to an account, as well as improved gift tracking capabilities.
- The ability to seamlessly send electronic payments directly to over 800 educational institutions.
"Ascensus is honored to be chosen to partner with T. Rowe Price and support the education dreams of students and their families across the nation," said Peg Creonte, president of Ascensus Government Savings. "T. Rowe Price is one of the most respected investment management firms in the world and a highly successful program manager for 529 plans. It's a great fit for our world-class service and advanced technology, including mobile capabilities, 529 gifting, and payment integration with schools nationwide."
First launched in 1996, 529 education savings accounts allow savers, their friends, and families to contribute money toward expenses on a tax-advantaged basis for public or private college, technical/vocational schools, apprenticeship programs, education loan repayment, and certain primary and secondary school expenses. There are over 675,000 account owners saving for education through the four programs managed by T. Rowe Price.
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price has
ABOUT ASCENSUS
Ascensus is a market-leading enabler of tax-advantaged savings—providing technology, services, and expertise that helps millions of people save for a better future. The company is a premier savings program service provider, third-party administrator, and government savings facilitator. Its platforms, industry knowledge, and data-based insights enhance the growth and success of its partners, their clients, and savers through co-branded, private-labeled, and governmental partnerships. Ascensus offers comprehensive qualified and nonqualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, corporate- and bank-owned life insurance solutions, and fiduciary and total rewards services. Ascensus has more than
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SOURCE T. Rowe Price Associates, Inc.
FAQ
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