Technology is the name of the game as pension funds streamline and enhance their user experience.

A report from Cerulli Associates shows that retirement funds in Asia are upping their game in a drive to become more transparent, streamline their administrative processes, and give fund members greater access to their accounts. (Wealth Adviser)

Cerulli: Asian centralized electronic platforms

The upcoming eMPF (Mandatory Provident Fund) in Hong Kong is a centralized electronic platform. It will allow members to view and manage their retirement accounts online. It is set to be launched in phases starting from 2022.

Apart from convenience, the platform will also lower the cost of investing for the members.

The Employees Provident Fund in Malaysia introduced its i-invest platform in August. The platform allows the members to view their holdings, ascertain their holding costs, and assess historical fund performance. They can also invest excess funds into various retirement savings products. These include unit trust funds from approved fund management institutions, according to Cerulli.

The platform charges a maximum of 0.5% for investments made through it, which is significantly lower than market intermediaries.

In Taiwan, an innovative pilot program by the Financial Supervisory Commission was titled “Enjoy Your Retirement.” The Commission appointed an online fund sales platform, FundRich, to run a scheme comprising nine funds that charge an annual management fee of between 0.3% and 0.5%. Because of its convenience and lower costs, the program was a huge success.

People have more say in their retirement planning

“In the long run, more people are likely to utilize low-fee online platforms to invest in retirement savings products,” said Cerulli Associates senior analyst Shannen Wong. “With infrastructure that offers convenience and greater online accessibility, platforms may attract more investors to put their excess monies in retirement savings products.”

Wong also said that fintech firms will play a larger role and collaborate with pension managers and other industry players by offering global advisors and mobile wallets.

This will further enhance the digital infrastructure in the Asian retirement space.

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