Pension providers urged to speed up digital transformation

Speed tunnelWealth managers must accelerate their adoption of digital technology for their retirement offerings or else risk losing clients to digitally-native providers, according to data and analytics firm GlobalData.

According to GlobalData wealth management analyst Sergel Woldemichael, the wealth management industry has adopted digital technology and more personalised services to attract millennials but has not taken the same approach to investors of retirement age.

He cited the results of a recently conducted GlobalData survey into consumers’ financial services preferences which found that while retired investors favour traditional players to manage their investments, there is still a large proportion that prefer digital players and the customer experience they bring to the table.

“So, traditional players should not be resting on their laurels assuming that only the millennials are keen on new digital wealth management services,” said Woldemichael. “Despite not being digital natives, the older generation are not all that shy of technology.”

He cited the growth in assets under management of UK-based online pension provider PensionBee as evidence of the demand for digital services among pension investors. 

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