A pair of 401k fintech tools in the form of an analytics-driven retirement plan health dashboard for plan administrators and a mobile app to speed retirement account transactions for plan participants were introduced this week by ADP Retirement Services and Principal Financial Group, respectively.
To help advisors keep up with new 401k fintech, here’s a quick backgrounder on both products, courtesy of announcements released this week by both companies.
ADP Retirement Services Introduces Innovative Analytics Dashboard
To design a more people-centric approach to retirement readiness and drive better retirement outcomes, Roseland, N.J.-based ADP Retirement Services recently launched an analytics-driven dashboard for easier and more effective management of retirement plan health.
According to ADP, using the dashboard allows VPs, CFOs, financial advisors, benefits managers, and payroll managers to quickly assess the health of the retirement plan for a company’s workforce. They can measure plan progress using key plan indicators to determine if their plan is on track or if they need to take action on performance improvement.
Employees are staying in the workforce longer, dealing with financial stress due to numerous factors, and increasingly looking to their employers for help. According to ADP’s Evolution of Pay study, 79% of employees want to work for an employer that cares about their financial wellness. In response, organizations are meeting this demand by delivering more actionable financial technology tools.
The dashboard is unique in the market, ADP says, as it is based on a proprietary plan health scoring methodology. It also stands out due to its simplified, easy-to-understand snapshot of the health analytics of a retirement plan and the ability to easily stack this data up against industry benchmarks. With benchmarking, organizations can gain a deeper, broader perspective on retirement planning and optimize their plan to be more competitive.
“Based on research we commissioned to better understand employee retirement preparations and outlook in January, retirement readiness remains a significant challenge, with nearly half of employees saving less than $5,000 annually,” says Kristin Andreski, senior vice president and general manager, Retirement Services at ADP.
“With this offering, we seek to provide our customers with a holistic solution that helps plan sponsors be more proactive and strategic in their roles,” Andreski adds. “It is a real-time solution that helps them go beyond basic reporting, understand the bigger picture, while providing more precise guidance towards retirement plan health.”
In an Aug. 13 statement announcing the new 401k fintech tool, ADP says that in order to stay competitive in today’s tight labor market, organizations are increasingly looking to offer employees more sophisticated assistance with their financial wellness, including data-driven retirement planning. This tool helps plan sponsors assess their employees’ retirement readiness making it a core differentiator for every ADP Retirement Services customer.
New retirement account mobile app from Principal
Taking the best of human-centered design and holistic participant experience, Des Moines, Iowa-based Principal Financial Group has launched a new mobile app for retirement plan customers.
The native-built app leverages biometrics, education and on-the-go account access to help instill confidence and make transactions quick and easy, Principal says in an Aug. 14 statement.
The newly designed app is the latest in a string of customer experience enhancements, including the launch of ARAG will preparation services, educational content, HSA account integration and an Amazon Alexa Flash Briefing skill to share financial tips.
“We don’t expect customers to interact with their 401k account every single day. But we know that when they want to check their account or make changes, it needs to be a seamless experience,” says Joleen Workman, vice president of customer care at Principal. “The app has the transactional excellence that people expect, coupled with moments of education and celebration to help our customers build confidence. Retirement planning doesn’t have to feel complex when the industry doesn’t make it hard.”
The Principal app will still have capabilities for insurance customers available, and there are planned enhancements to the app in the coming months. A previous Principal app was sunset in March as part of the transition.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
