What are pension providers doing to innovate in the category, and how are they driving customer engagement in new or innovative ways?
When it comes to innovation, the pensions industry has traditionally lagged behind other financial service sectors, but 2016 has been a critical juncture in the field.
There has been an effort by pension providers to modernise and ultimately enhance customer engagement. Previously hindered by often complex and jargon-heavy procedures, combined with increasingly demanding and less patient customers, pension providers are now embracing alternative techniques. The result is that the current pension landscape is transforming, and in doing so, contributing to a brighter future that will drive engagement in the industry.
The problem faced by pension companies in the past was multi-faceted and difficult to quickly fix. Customers throughout their working lives accumulate numerous pensions across an array of providers – on average a person will have 11 different employers during this time. In addition, there is a habitual lack of understanding and commitment among customers.
The disconnect between customers and pension providers is obvious. For example, a YouGov survey in 2015 found the 74% of working age people with a pension do not understand or are aware of a tax relief that is possible from their pension contributions.
Given these gaps in knowledge, there is a space in the industry for innovation that can capitalise on the growing opportunities for customer engagement.
Our latest report, Innovation Monitor, presents top line insights and awareness of innovative movements across the pension industry. We take a look at the many opportunities innovation makes available, including smartphone apps, digital dashboards, robo-advice and gamification, as well as two case studies of innovation at Aviva and AEGON.
You can download the report here.