Financial technology firm Luma Financial will expand at its current downtown location in U.S. Bank Tower, 425 Walnut St. , and could receive job-creation tax credits from the city to do it if Cincinnati City Council approves.
Luma is doubling in size, adding 58 new, high-paying jobs to its existing headcount of 54 employees. The new roles will allow it to offer additional products to its customers, including annuities, as well as expand its international presence.
The new jobs will be information technology, analysis, quality assurance, human resources and other titles.
“This one is exciting,” said Markiea Carter, the city’s economic development director.
If council approves the deal, Luma will receive a four-year, 35% non-refundable job creation tax credit worth $171,712. The company would be required to keep the jobs in Cincinnati for eight years. The city will realize an additional $809,503 in earnings taxes under the deal.
“The project provides an advantageous return on investment for the city,” according to documents filed with council.
Luma had not previously said where its expansion would occur, although it said it had outgrown its current space in U.S. Bank Tower.
The new jobs will add $6.8 million to its $6.5 million payroll. The jobs pay an average of $115,000 per year. The city was competing with New York for the jobs.
Council is expected to vote on the project on Wednesday. The project is contingent on the approval of local incentives.
Luma previously received a 2%, eight-year tax credit worth $935,000 from the state. It is required to maintain its operations for 11 years under that deal.
Driving the need for more personnel is the massive growth Luma has had in providing a technology platform for investment advisers to access and compare structured products and annuities.
Luma makes it easier for investment advisers to access structured products and annuities. Structured products typically link an investment to a market index to provide downside protection and enhance returns. Among other things, Luma helps investment advisers offer the products to clients, compare the various products that are available and track investment results.
Luma now handles $20 billion a year in structured product volume, one-third of the market.
