We, Robot: Will a Fintech Wave Sweep over the Group Retirement Business?
Two worlds collide—or join forces—when group retirement plan providers face the coming wave of emergent fintech upstarts. This research report, published as part of Investor Economics’ dedicated coverage of the group retirement market, examines the potential for fintech-style innovation in the group savings arena.
The proliferation of fintech start-ups has set the global wealth management industry, including Canada, abuzz as these emergent players aim to challenge traditional business models. Bolstering the business case for the current wave of fintech companies are changing consumer demographics and psychographics. With greater access to technology, today’s consumers have high—and rising—expectations of frictionless client experience, simplicity, accessibility and convenience.
The delivery of financial advice is one facet of the retail financial services experience that fintech firms have identified as ripe for disruption. A new form of automated online advice, robo-advice, has entered the wealth management lexicon. The robo-advice business model challenges the current face-to-face advice paradigm by providing clients access to investment selection, asset allocation and planning through a simplified online interface and onboarding experience. Leveraging technology on the back-end, robo-advisors are hoping to build low-cost and scalable delivery models.
The quest for scalable advice, however, extends beyond the retail financial advice sector. With 6.3 million participants and counting, the group retirement and saving market in Canada may present an equally attractive opportunity as participant advice and outcomes remain in the spotlight.
In this light, the 2016 Group Retirement Savings and Pensions Update report feature story explores the robo-advice phenomenon with an eye to how it may influence the group retirement market. To provide insight to players across the group and retail wealth management industry, the feature examines fintech developments in the US and Canada, and how that technology may be leveraged in each market.
The 2016 Group Retirement Savings and Pensions Update is an essential read for all who are interested in considering the impact of fintech developments on the future of the financial services industry at large, and the group retirement services specifically. The 2016 Group Retirement Savings and Pensions Update also features updated analytics for the group record-keeping and group segregated fund data. As such, the update is a critical tool for all interested in the opportunities provided by the fast-growing Canadian GRS marketplace. For more information contact Daniel Bederman at Daniel@iei.ca.