Pensions industry backs multiple dashboard approach – Tisa research

The pensions industry would prefer a multiple dashboard solution over a single dashboard, with a Tisa poll of pension administrators, pension providers, fintech firms, fund managers, banks, building societies and law firms finding 71 per cent in favour.

The research, across 28 firms, found 96 per cent supported making participation mandatory for pension providers to participate to ensure full coverage. The research found 89 per cent thought information made available by all providers would need to be standardised, and 85 per cent said the dashboard would need to use a set of open digital standards, for example user verification and user data agreement, to make sure its secure.

The research also found that 71 per cent of firms surveyed would choose an ‘open standards model’ for the new pensions dashboard. This would allow pension providers, platforms, distributors and fintech service providers the opportunity to offer their own dashboard options to their customers, providing it conforms to the pre-agreed set of principles industry has set and governs.

A second option put to members was the ‘single provider, single access point model’. Only 6 per cent of respondents supported this option which would only be available via the Single Financial Guidance Body. The third option, which had support of 23 per cent of respondents, was the ‘single provider, multiple access point model’. This would be accessible via individual providers, but they would not be able to tailor or personalise the dashboard in any way.

On the issue of security, 85 per cent of respondents said the new dashboard would need to have strong security and identity restrictions in place. The respondents also agreed there would be benefit in having a single security system used across the Single Financial Guidance Body/DWP, the pensions industry and dashboard providers.

Nearly all participants – 96 per cent – agreed there would need to be mandatory involvement for all pension providers to make the dashboard a success.

Tisa strategic policy director Charles McCready says: “We would strongly support adopting this model as it would encourage more innovation and competition, create improved consumer experiences and outcomes for those using the dashboard and drive engagement. Crucially, it would also enable the development of an investment dashboard allowing consumers to bring ISAs and other savings into view giving them a holistic picture of their financial position.

“These latest results demonstrate our industry’s willingness to work together to create a solution that will help the public plan for a successful retirement.

“However, whilst it’s great to see that the industry is broadly on the same page, there’s still work to be done. It’s vital that the dashboard is future-proofed to make sure that it keeps up with evolving technology and we need to make sure that we’re keeping consumers details safe without making the platform too difficult to access.”

Origo managing director Anthony Raffertysays: “The TISA survey clearly indicates what the industry would like to see in terms of giving consumers access to dashboards and their future development.

“Whether there is one or multiple dashboards from launch, the underlying infrastructure must be flexible to cope with future technological requirements. Over time, demand for the service can only grow as more people join workplace pensions, particularly through auto enrolment, and those also wishing to check on their State Pension.

“Origo analysis shows that up to 15 million people could want to access the dashboard when launched and they will want to do so in a way that is easy and intuitive as well as being safe and secure. It is essential that the underlying technology can not only deal with that volume of demand but be able to deliver and maintain the service and data in a way that is secure, robust and scalable.”

Aegon head of pensions Kate Smith says: “As a keen supporter for multiple dashboards, Aegon welcomes these findings from Tisa. Pension dashboards will not only generate interest in pensions, they also have the potential to transform pension saving for consumers and advisers. Providing a clear view of all their pension pots at a glance, saves time and effort, and makes advice more affordable. Multiple dashboards pave the way for more development and advances in the technology used for keeping track of  pensions.

“A single dashboard offered by the public guidance body, carries the risk of standing still and not moving with the times in terms of development and meeting customer needs.

“However, the only way to make the pension dashboard a reality is for the government to legislate. To make dashboards meaningful, all pension schemes and providers need to be compelled to provide information about scheme memberships and ideally real time information and up to date valuations.
“There are pros and cons of partially populated dashboards. On the one hand, these will begin to get people interested in the concept. On the other, they could create disillusionment if people lose faith when they can’t see all their pensions.

“Without legislation or regulation there’s a real risk that the pension dashboard will stop in its tracks. While commercial providers could launch their own dashboards, if there are schemes ‘missing’, success would be limited. The dashboard would be underused and the whole concept could become discredited. While it’s great to see some progress with the ABI’s plans for the pensions dashboard, the Government needs to support this initiative and ensure there is space in the legislative timetable this side of 2020.”

 

 

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