Optimizing the Online and Mobile Experience for Retirement Plan Participants
 

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To compete in the digital age, financial services firms must offer customers powerful online and mobile capabilities that allow them to manage their finances on-the-go. This presentation focuses ...

To compete in the digital age, financial services firms must offer customers powerful online and mobile capabilities that allow them to manage their finances on-the-go. This presentation focuses specifically on the retirement industry and, through a series of best practice examples from industry leaders, illustrates how firms can optimize the digital user experience they offer their retirement plan participants.

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Optimizing the Online and Mobile Experience for Retirement Plan Participants Presentation Transcript

  • 1. OPTIMIZING THE ONLINE AND MOBILE EXPERIENCE FOR RETIREMENT PLAN PARTICIPANTS DREW MARESCA SENIOR ANALYST, RETIREMENT PLAN MONITOR JULY 2013
  • 2. ABOUT CORPORATE INSIGHT 2 Connect With Us Corporate Insight (CI) provides competitive intelligence and user experience research to the nation’s leading financial institutions. For over 20 years, the firm has tracked technological developments in the financial services industry, identifying best practices in online banking and investing, online insurance, online asset management, mobile finance, social media and other emerging areas. There are no assumptions in Corporate Insight’s work – we use live accounts at all of the firms we research, providing our clients with unparalleled, unbiased intelligence on the competition. We welcome the opportunity to speak with the media. If you are interested in citing our research or would like to schedule an interview with one of our analysts, contact Intermarket Communications at 212-888-6115 or corporateinsight@intermarket.com. Media Inquiries DREW MARESCA Senior Analyst Retirement Plan Monitor 212-832-2002 x-122 dmaresca@corporateinsight.com BEN POUSTY Marketing Manager 212-832-2002 x-134 bpousty@corporateinsight.com
  • 3. TABLE OF CONTENTS 3  Introduction  Helping Participants Get Started: How am I doing?  Tools and Other Resources: What should I do?  Getting Participants to Act: What investment should I choose?  Getting Participants Engaged: How do I stay on track?  Five Key Takeaways for DC Plan Providers  Corporate Insight Thought Leadership  About the Author
  • 4. INTRODUCTION 4 To compete in the digital age, financial services firms must offer customers powerful online and mobile capabilities that allow them to manage their finances on-the-go. This presentation focuses specifically on the retirement industry and, through a series of best practice examples from industry leaders, illustrates how firms can optimize the digital user experience they offer their retirement plan participants. Our research focuses on the four key questions plan participants want DC plan providers to help them answer on their participant site or mobile app: 1. How am I doing? 2. What should I do? 3. What investment should I choose? 4. How do I stay on track?
  • 5. HOW AM I DOING? WHAT SHOULD I DO? WHAT TO CHOOSE? HOW DO I STAY ON TRACK? HELPING PARTICIPANTS GET STARTED 5
  • 6. THE HOMEPAGE • Transamerica’s Retirement Outlook feature is a simple and creative way to depict how close participant plans are to meeting retirement goals • The embedded retirement outlook relates plans to weather forecasts, offering four options: sunny, partly sunny, cloudy or rainy 6 Transamerica Home screen with Retirement Projection
  • 7. PUTTING SAVINGS INTO CONTEXT 7 • Wells Fargo’s approach is more explicit • Prominent red banner draws attention to retirement outlook • A simple graph illustrates the projected goal versus projected income Wells Fargo Homepage with Retirement Forecast
  • 8. PUTTING SAVINGS INTO CONTEXT 8 • Vanguard uses a traffic light as an attention grab and a creative means to express the likelihood of meeting retirement goal • Three traffic light colors: green, yellow and red • The forecast is written out to the right of the image Vanguard Home screen with Retirement Forecast
  • 9. GOING MOBILE 9 • Transamerica o Mobile app features the same Retirement Outlook information as their website o Weather forecaster is embedded in the mobile app; shows consistency across different channels • VALIC o The Am I On Target? tool results screen is available through their mobile app, which forecasts retirement income o Tool features a speedometer estimating the likelihood that a participant might meet their retirement goal o Results range from red to green, which imply failure and success, respectively VALIC Mobile App with Retirement Forecast
  • 10. 10 • T. Rowe Price o Mobile app devotes a screen to the estimated retirement income o Explain how much an additional $100 per month contribution would increase income in retirement • J.P. Morgan o Lists a retirement income figure within its mobile app o The figure is derived from the a website tool – the Dream Machine T. Rowe Price Mobile App with Retirement Forecast GOING MOBILE
  • 11. MAKING STATEMENTS INFORMATIVE 11 • Vanguard embeds a retirement forecast on the first page of its quarterly statements • Vanguard provides three separate retirement income projections, each of which correlates with a different contribution rate/amount Vanguard Statement with Retirement Forecast
  • 12. 12 ANOTHER INFORMATIVE STATEMENT • J.P. Morgan embeds the results of the Dream Machine on the first page of quarterly statements • The three scenarios provided represent ascending hypothetical annual income amounts, each of which is the result of retiring at a different age J.P. Morgan Statement Retirement Forecast
  • 13. HOW AM I DOING? WHAT SHOULD I DO? WHAT TO CHOOSE? HOW DO I STAY ON TRACK TOOLS AND OTHER RESOURCES 13
  • 14. DETERMINING RISK TOLERANCE 14 • The MassMutual RetireSmart tool features a step that asks participants a series of questions, which help build an in-depth risk profile • Questions ask participants to rank retirement-related preferences based on personal sentiments MassMutual Retirement Smart Tool – Input Stage
  • 15. RETIREMENT SAVINGS PROJECTIONS OVERVIEW SAVINGS PLAN SUGGESTIONS OTHER RISK FACTORS 15 • Fidelity Retirement Planner Tool offers users in-depth results, organized by intra- page tabs across a number of pages • Results are clearly organized and delineated Fidelity Retirement Planner Tool – Results Page One
  • 16. ACTIONABLE ADVICE 16 • Fidelity Retirement Income Planner also offers participants an Action Plan featuring the following details: o Current Allocation o Suggested Allocation o Options to print and save results Fidelity Retirement Planner Tool – Results Action Plan
  • 17. ENABLE INTERACTION VIA SIMULATIONS 1 2 3 17 • Fidelity Income Simulator generates easily editable results • Participants can toggle between a poor market or an average market, alter contributions and/or reallocate the account for the purpose of the hypothetical scenario or change the retirement income goal all together • This gives the participant autonomy in terms of looking at different retirement scenarios and determining the best fit Fidelity Income Simulator Tool - Results
  • 18. HOW AM I DOING? HOW DO I STAY ON TRACK WHAT SHOULD I DO? WHAT TO CHOOSE? GETTING PARTICIPANTS TO ACT 18
  • 19. EXPLAINING TARGET DATE FUNDS 19 • Vanguard offers background information on its participant site for each available target date fund • ‘Selecting a Different Portfolio’ is a dynamic calculator that helps select the right fund • ‘How these portfolios work’ is a short, embedded video that explains how target date funds function Vanguard Target Date Funds Information
  • 20. RISK AND RETURN 20 • Color-coded legend is available below the comprehensive list of investments on Principal’s participant site • Provides helpful guidance to participants in need of assistance • Offers the same legend on quarterly statements • Consistency across channels eliminates confusion Principal Investment list Page and Risk Key/Legend
  • 21. EASY COMPARISONS AMONG FUNDS 21 • T. Rowe Price displays investment information using an organized table with the following features: o Hyperlinks to fund fact pages o Funds can be filtered and compared to various benchmark indices o Selecting an intra-page tab from the top of the table filters down results to only those within a selected asset class T. Rowe Price Investment Information
  • 22. HOW AM I DOING? WHAT SHOULD I DO? WHAT TO CHOOSE? HOW DO I STAY ON TRACK GETTING PARTICIPANTS ENGAGED 22
  • 23. EMAIL ALERT REMINDERS 23 • Email reminders are a good way for providers to engage their participants • Few providers offer comprehensive alerts, like those offered in the brokerage space ShareBuilder Email Alert
  • 24. MOBILE TRANSACTIONS 24 • Mobile apps equipped with transaction capabilities increase engagement and are a great convenience for plan participants • Of the 17 Retirement Plan Monitor providers we track, only two – ING and Vanguard – allow users to complete transactions directly from their mobile apps Vanguard Mobile App – Transactions Screen
  • 25. GAMIFICATION 25 • Video games and interactive quizzes reach a broader consumer base • Like alerts, few retirement plan providers have embraced digital gaming • Gaming is a trend worth watching as it successfully builds brand recognition J.P. Morgan Game – The Biggest Saver
  • 26. HOW AM I DOING? WHAT SHOULD I DO? WHAT TO CHOOSE? KEY TAKEAWAYS 26 HOW DO I STAY ON TRACK Key Takeaways
  • 27. FIVE KEY TAKEAWAYS FOR DC PLAN PROVIDERS 27 1. Provide a retirement forecast so participants are cognizant of hypothetical retirement scenarios 2. Allow participants to develop an in-depth risk profile that can be used throughout the retirement planning process 3. Offer valuable planner results that are easy to understand 4. Offer detailed fund information so participants can make informed decisions 5. Provide consistency across key channels: online, mobile, and client collateral
  • 28. CORPORATE INSIGHT THOUGHT LEADERSHIP 28 2013 Mobile Finance Trends and Innovations This study highlights interesting and important mobile finance trends from the first half of 2013. It includes commentary on relevant mobile developments outside of the financial services industry, key takeaways for financial services firms and thoughts on what’s next for mobile finance. Asset Management and Social Media: A Guide to Social Marketing This guide looks at how asset management firms use popular social media platforms such as LinkedIn, Twitter, Facebook, YouTube and Google+ to connect directly with investors and financial advisors. Also available as a slide deck. The Millennial Opportunity Whitepaper Examines the marketing tactics, strategies and online resources leading financial institutions are using to connect with Millennials. Also available as a slide deck. Apple iOS 7 Ideas for Financial Services Firms Apple iOS 7: Ideas for Financial Services Firms explains how firms can leverage the new features in iOS 7 to make their mobile apps more user-friendly.
  • 29. ABOUT THE AUTHOR 29 DREW MARESCA SENIOR ANALYST RETIREMENT PLAN MONITOR Drew Maresca is the Senior Analyst for Corporate Insight’s Retirement Plan Monitor service and head of CI’s research efforts in the retirement space. Drew and his team focus on tracking and analyzing the digital user experience DC plan providers offer plan participants via the online, mobile and social media channels. Drew has conducted extensive research in the retirement space with past reports focusing on iPhone, Android and iPad Retirement Apps, Online Retirement Planners, Retirement Account Statements, Social Media Practices and more. His research has been cited in a number of media publications including Ignites, Kiplinger’s and Plan Sponsor. Drew has been a part of the Corporate Insight team since 2007. Before founding Retirement Plan Monitor, he worked as an Analyst for CI’s Advisor Monitor and Mutual Fund Monitor research services. CONTACT DREW: T: 212-832-2002 x-122 E: dmaresca@corporateinsight.com