Expansion of an Existing Pension Technology Platform

Expanding a multi-tenanted occupational (pillar 2) pension platform for a major European international bank

The Challenge

Our client, a major European international bank with a wholly-owned asset servicing division, had operated a multi-tenanted occupational (pillar 2) pension platform for a range of pension product providers over many years.

The client had a problem with its platform as new pension reforms were introduced to the UK market in 2006 and their existing platform required change to meet the new rules.

The challenge – for the client, with our help – was to look for ways to reform their underlying pension platform technology.

Our client also wanted to better respond to the new policy and regulatory changes whilst not disturbing the many incumbent platform tenants.

Our Move

Over a period of several years, we worked with the client to assess the scope and ambition of each incumbent platform ‘tenant’.

This allowed us to compare the features and functionality that were already on the pension platform vs. what was required/useful going forwards.

The client gained knowledge, through measurement, as to what ‘success would look like’ for all stakeholders.

A full range of pension technology documents were drafted by us and the client, reviewed and then adopted by the client’s wider organisation.

The new documentation regularised the client’s pension technology roadmap.

It also achieved consensus amongst the existing platform tenants as to the direction and priorities for pension technology improvements to be carried out by the client on their behalf.

Ultimately, the client decided that pension administration and pension technology were ‘non-core’ to its enterprise strategy.

The client divested itself of the unit, with many of the former tenants deciding to migrate to other, large-scale competitors.

The Result

Measuring, documenting and deciding with detailed information at all stages enabled our client to reach the right (for them) decision about their in-house pension technology and strategy.

The client reported satisfaction about the eventual outcome and the way in which the right data enabled them to make the decision with confidence.