What a successful growth strategy for pension solutions is based on

Challenge 

Our client, a Swiss Financial Service Provider, was looking for options to expand its retirement product offering. The client wanted to understand what a growth strategy in the area of 1e pension plans could look like, how and on which technology platforms it should be implemented, and which partners would come into question.

Like many other market participants, our client did not have a differentiated value proposition for retirement products. Therefore, we first had to clarify the target segments with the client, i.e., whether to address individuals, SMEs, larger institutions and/or multinationals. To evaluate the client’s product implementation readiness and growth potential, we needed to gain a deep understanding of the current approach to customer engagement, internal processes, competitors, and general market sentiment. It was our task to assess the benefits and limitations of the current partnership with a pension provider and to evaluate alternative strategies and potential partners.

A major challenge was to raise the readiness for partnerships internally. The benefits of transparency disclosure had to be demonstrated both within the client's organisation and to potential external partners. Since partnerships usually grow organically, the client needed a good value proposition to approach potential partners. Furthermore, such a new partnership entails a culture change within the company with relationship managers needing to adapt their mindset as well as their tools and platforms.

Solution 

To define the client's market approach and potential growth strategy, we identified and sharpened the client's USP based on various selection criteria that are key to the choice of 1e plans and along the dimensions of service offering, investment offering, as well as independence, cost, and experience.

We conducted interviews with internal and external stakeholders such as relationship managers, potential clients and partners, and pension providers to identify their needs and those of the market. Stakeholder-specific questions covered everything from the customer engagement process and internal governance procedures to customer segmentation, price sensitivity, and readiness for a digital platform. We then hypothesised the value proposition, which we tested in meetings with external participants.

The results of the interviews showed a discrepancy between the client's current focus and the market potential through segment and partner expansion. Based on this analysis – combined with our experience, interdisciplinarity, and deep understanding of the market and product side – we were able to determine three high-level strategic pillars that would enable the client to explore new possibilities of growth in the area of 1e pension plans. The drivers for growth in the new offerings could be specified along five operational layers: clients, channels, offering, organisation, as well as technology and partners. For each of these operational levels, we defined a target operating model based on a review of best practices.

Finally, these findings were compiled in a roadmap that includes suggestions for potential partners and clear recommendations for the next implementation steps.

Results

In the area of 1e pension plans, we have identified a clear growth opportunity for our client over the next two years. We have provided the client with a detailed, multi-layered growth strategy and specific proposals for a potential partner and technology solution. 

By expanding its target segments, implementing the proposed approach, and choosing a new partner, the client can generate new growth and increase its market share. In addition, working with the proposed partner will lead to a significant increase in assets under management and a reduction in costs.

Our roadmap outlines the next steps that are necessary to successfully expand into the 1e space and take advantage of the growth opportunities in this interesting and growing market.

At the heart of our global strategy, 'The New Equation', is our focus on putting the client at the centre and striving for sustainable outcomes rather than short-term goals. This project was no different. We brought together our team of unconventional problem solvers with different skillsets to achieve long-term results and ensure sustainable success of the client’s business.