RESEARCH REPORT
Reinventing retirement recordkeeping
10-MINUTE READ
September 10, 2024
In brief
- Retirement recordkeepers in North America face challenges including narrow profit margins, declining fees and outdated technology platforms.
- Consolidation is prevalent as larger players acquire smaller ones to gain further scale.
- Recordkeepers need to adapt by leveraging technology, exploring new revenue opportunities, and enhancing efficiency to meet customer demands.
Navigating challenges and opportunities
The retirement recordkeeping industry is presented with both significant challenges and opportunities for transformation. This dynamic environment calls for strategies that could include scaling up or targeting specific market segments, delivering comprehensive financial advice services, and introducing personalized products. By leveraging emerging technologies such as generative AI, and building a strong digital core, recordkeepers could achieve a lean cost structure and adapt to the changing and consolidating landscape.
Strategic transformation for recordkeepers
Today, recordkeepers are pursuing different strategies to compete. Scale organizations have accumulated significant scale as measured by assets and number of participants. Large-plan specialists cater to very large plans and often offer holistic workplace offerings. Small-plan specialists efficiently serve extremely small plans, leveraging protected distribution channels. Product specialists deliver specific capabilities to unique plans and have competitive advantages in serving niche market segments. But no matter the size or focus, recordkeepers need to navigate a rapidly changing landscape.
Three key requirements to stay ahead
How to drive reinvention – starting now
In the face of transformative changes in the retirement recordkeeping industry, recordkeepers need to embark on a journey of reinvention to thrive in an evolving landscape. It is essential for them to address strategic questions, embrace emerging technologies, and redefine their business models. Progress lies in navigating challenges, seizing opportunities, and adopting a mindset of continuous reinvention.
Without strategic reinvention, retirement recordkeepers risk becoming obsolete in a rapidly consolidating industry.
Tim Hoying / Managing Director – Accenture Strategy
We invite you to reach out and engage with us to delve deeper into the insights presented in this paper. By collaborating and sharing ideas, we can collectively drive innovation, shape best practices, and advance the retirement recordkeeping industry forward. Contact us today to explore new possibilities together.