By FINTECH Books Contributor, Yvonne Braun
Voice-controlled, AI-enabled technology is re-shaping our experiences of shopping, entertainment and consuming information. Yet this wave of innovation seems largely absent from retirement savings. The pension dashboards project is seeking to radically change this by enabling consumers to see all their pension entitlements in a single place of their choice online.
Why dashboards? Multiple jobs bring a greater risk of lost pension pots. Disappearing final salary-type pensions and increasing life expectancy mean people have to take responsibility for their financial health after work.
Many pension providers and administrators already have slick websites and apps, but practices vary.
Data portability under the GDPR is intended to drive competition, delivering better services for consumers. The FCA see dashboards as a way to help make financial advice available to the mass market. Many providers want to create their own dashboards to offer customers better engagement.
HMT sponsors this project, chairing a Steering Group with representatives from all parts of the sector and two independent members, including one with strong FinTech credentials. The ABI is project managing the delivery.
The project is creating a prototype to demonstrate the end-to-end infrastructure to connect multiple pension schemes with pension dashboards. Six technology companies are building the components.
The project is operating under the principles of transparency, cooperation and innovation. The project is running challenge panelsto give different parts of the market access to its work. It will also run a “tech sprint” event to enable FinTechs to look at what’s been developed and to come up with new ideas.
2019: Full implementation across the State Pension, public and private sector, defined benefit pensions and contract-based pensions will require compulsion on all schemes. It also needs a governance structure that is commercially savvy, enables innovation and commands consumer trust. There are many trade-offs here and it is a tall order, but the prize is huge.