[Report] Technology and pensions

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oecd (16.01.2018) Technology is rapidly transforming the way that the financial sector is operating, and the management and delivery of pensions is no exception. Innovative applications of technology for financial services, or FinTech, are already being used to improve communication with consumers and their engagement with their pension plans. FinTech also has great potential to help pension providers make their internal processes more efficient and improve their risk management. The possibilities that new technologies offer are driving changes in business models and the way in which financial products are delivered to consumers. These changes can lead to increased consumer benefit through lower costs and increased accessibility of pensions. While regulators are keen to promote innovative ideas that can lead to consumer benefit, they also have to proceed with caution to ensure that consumer protection is not overlooked. Many jurisdictions are dedicating significant resources to keep up with the rapid technologically-driven changes so that the regulation can strike a balance that is both adequate and appropriate in this new environment.

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Technology is rapidly transforming the way that the financial sector is operating, and the management and delivery of pensions is no exception. Innovative applications of technology for financial services, or FinTech, are already being used to improve communication with consumers and their engagement with their pension plans. FinTech also has great potential to help pension providers make their internal processes more efficient and improve their risk management. The possibilities that new technologies offer are driving changes in business models and the way in which financial products are delivered to consumers. These changes can lead to increased consumer benefit through lower costs and increased accessibility of pensions. While regulators are keen to promote innovative ideas that can lead to consumer benefit, they also have to proceed with caution to ensure that consumer protection is not overlooked. Many jurisdictions are dedicating significant resources to keep up with the rapid technologically-driven changes so that the regulation can strike a balance that is both adequate and appropriate in this new environment. This report provides an overview of how technology is being used to improve pension design and delivery and how regulators are managing these changes. The discussion on the challenges that regulators face to support FinTech draws mainly on insights from a roundtable held at the G20/OECD Task Force on Financial Consumer Protection meeting in March 2017 that brought together both regulators and industry participants to discuss these issues.