Platforms providing aggregated retirement solutions are on the rise
With the increasing demographic of individuals over age 65, there is a growing opportunity to innovate connected business models to serve them. Platforms providing aggregated retirement solutions are on the rise and pull together life, health & wealth product management onto single platforms. In this age of centralized solutions, customers expect streamlined technology in every area of their lifes.
The top retirement platforms offer solutions to a growing number of customer challenges and opportunities. An opportunity exists for innovative companies providing unique solutions that can be integrated across these platforms. This symbiotic relationship between solution innovators and established distribution platforms creates new levels of value to customers without the need for diverting core business focus, development, and resources. Like the emergence of independent distribution, integration-ready solutions provide a scalable way for financial organizations to expand their reach while assuming a limited amount of potential downside.
Being integration-ready and represented on the growing number of retirement platforms has become an opportunity. With the recent emergence of full-service retirement platforms, there is also an opportunity for coalitions of top financial organizations to offer their own solutions. Like the Alliance for Lifetime Income, however, these become more actionable by including real connected technology solutions to encourage customer interaction. While providing trademarks and education programs still provides value, it could be argued these basic offerings no longer garner the right to approach and engage financial professionals and customers.
Next Level Engagement: Providing education and technology together
The reality is education is only part of next-generation business models in a world where, no matter what, “there’s an app for that”. Providing education and technology together provides the why and how with which potential users can engage. While developing technology may seem like a massive initiative from a legacy development perspective, with a clear vision of desired features and project oversight by someone experienced in the most advanced development practices, more can be accomplished for less in a shorter amount of time than ever before.
Technology development is further accelerated through integration-ready, stand-alone solutions. Therefore, the implementation of a next-generation retirement platform does not require the development of every solution. Much like a car, the core platform can act as a chassis that integration-ready solutions can be added to. This approach benefits all parties involved, especially the individuals these platforms serve.
Some examples of stand-alone, integration-ready, solutions are ReverseVision (reverse mortgage technology) and LS Hub (life settlement technology). These solutions provide the ability to determine the value of non-traditional assets, which often unlocks much-needed cash to cover retirement expenses. This unlocked value can then be deployed into other financial products and used to reinforce a retirement plan. Both of these stand-alone solutions provide unique opportunities in complex industries that lead to significant value for individuals in retirement. By providing the ability to integrate, solutions like these can increase the value proposition of emerging retirement platforms quickly and without need for additional development or resources.
Teamwork makes the dream work
With the world becoming more connected every day, it is becoming increasingly important for strategic partnerships to emerge that provide solutions to as many challenges and opportunities as possible. Implementing business models with customer-centric value propositions, that go beyond core competencies to connect customers to stand-alone solution providers, is a way to stand apart. Teamwork makes the dream work, and the dreams of today are no longer mutually exclusive, but instead rely on gathering fast to turn the tides.
Stephen Jass, CEO, LS HUB
Stephen will be speaking at SVIA’s InsurTech Fusion Summit – Rise of a Digital Generation, during the Next Gen Business Models: Life, Health & Wealth session.
