The opportunity to create real consumer value comes in aggregating multiple retirement solutions into a cohesive experience. Roger Park, EY Americas Innovation Officer, said that the industry is moving along an exponential technology curve and that “to prepare for the future, to ‘catch the curve,’ we need to consider potential scenarios that we can invest in today that will both provide long-term value and help us prepare for the disruptive technologies of tomorrow.”
To that end, EY clients are increasingly making investments in artificial intelligence (AI), blockchain technology, new retirement income solutions and retirement planning experiences in the metaverse, and defining new retirement experiences with embedded finance. Sandeep Kumar, EY Retirement Technology Leader, has been working with large retirement clients and EYIS participants in experimenting generative AI solutions in business operations and exploring distributed ledger solutions to improve the operational challenges of data exchange and reconciliation.
“Large language models can be used along with enterprise knowledge systems to create solutions that improve agent productivity and more actionable solutions for the participants,” said Sandeep. Complex questions like “I need money urgently to prevent an eviction from happening” can be contextualized in the context of a participant’s plan rules and situation to generate clear one-click actions to apply for a hardship withdrawal. In the absence of such solutions, the experience is far more complicated, often requiring poring through several pages of FAQ, reading the plan documents and contacting recordkeepers to arrive at the above actionable state. For agents, such solutions reduce the learning curve and improve productivity while improving participant experience.
Additionally, the EY organization believes technology can enable the industry to address portability issues related to small accounts and missing participants. According to Sandeep, “distributed ledger solutions, if adopted by retirement industry players, could reduce this friction with a single source of truth with immutable data. The challenges in consolidating retirement accounts and finding missing participants is almost eliminated with a distributed ledger.” More broadly, distributed ledger technology will reduce reconciliation challenges and enable data standardization, which will reduce repetitive data exchanges.
Kelly Hynes, EY Retirement Leader, further explored challenges and opportunities that FinTech and big technology have in curating a better retirement ecosystem with Aaron Schumm, Vestwell Founder and CEO; Marla Sofer, former Microsoft Financial Services Lead/Industry Solutions CTO; Shaun McGinty, retired Fidelity Investments CIO; and Mathew Keeley, GROW Inc. Co-founder and CEO.
The most important theme that emerged was data. Cybersecurity and privacy concerns are critical, but access to participant data will allow the industry to better service the end consumer and provide the holistic financial advice they need.