Digital pension provider Collegia has reached break-even just four years after its launch.
Powered by a digital platform, Collegia aims to deliver high levels of service at zero cost for employers. Collegia Pension now supports more than 40,000 members across 4,000 employers. Over 50 per cent of employers also chose to use the Collegia FreePayroll platform.
Eduardo Chazan, chief executive of Collegia, says: “Breaking even is a huge achievement – especially for a business that has largely self-funded its growth. We set out to prove a model that doesn’t rely on the chequebook of a large venture capital firm, but instead uses cutting-edge technology to deliver outstanding service, dramatically lower operating costs, and near-zero friction for employers.
“The demand has been strong across both smaller and mid-sized employers. ‘Free’ is a powerful draw, but what keeps customers with us is the quality of the product – especially the ability for members to self-manage through the app, which can significantly reduce HR and payroll workload.”
The Collegia app supports more than 100 languages, looking to help employers better serve diverse workforces. It also features sustainable investment options managed by AllianceBernstein.
However, Collegia may face upcoming challenges due to the future scale requirements as part of the forthcoming Pension Schemes Bill.
Chazan says: “We are doing our part to push the sector forward, and we hope the regulatory framework leaves room for innovation. Otherwise there is a risk the UK makes a serious mistake – one that could leave British workers’ life savings missing out on the benefits of the AI revolution.”
