It’s Already Late In The Game
The largest retirement plan providers long ago deployed suites of digital planning and communications tools to reach 401(k) and other retirement plans savers. By doing so, they built relationships that benefitted their other business lines. As workers age and make more money, they may open taxable brokerage accounts, supplemental Roth IRA accounts or 529 college savings accounts. If a retirement plan provider can offer such services, they stand a better chance of capturing this new business if an easy and appreciated digital communications relationship is already in place.
For larger plan providers, much of this infrastructure is already in place. Smaller and mid-level providers have some work ahead and that’s crucial in an asset management industry where, year after year, the largest players tend to draw the largest inflows. Small and midsize players should view digital communications as an essential tool for competing with larger incumbents.
The potential for digital communications to have a positive impact on the financial lives of retirement investors is huge and forward-thinking retirement providers will fully commit to this project beyond the simple dissemination of statements and fee disclosures. Companies at the forefront of digital marketing are working out content management procedures, data management solutions, distribution beyond email (through mobile apps) and will actively encourage users to sign up for electronic engagement, no matter when the government allows these communications to actually replace the required paper statements that still go out in the mail every quarter.
Tim Slavin is senior vice president for retirement at Broadridge Financial Solutions, where he is responsible for business strategy in defined contribution and the retirement channel. With more than 30 years of industry experience, he has led growth into the retirement channel through acquisitions and new product development.