Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.
Despite Fintech Advances, Users Remain Reluctant to Try New Products
A Nationwide survey also found that annuity sellers want a simplified suitability process and better digital tools for accepting and managing applications.
Financial professionals who sell annuities are reluctant to change their software and financial technology systems or look for more options, according to a recent Nationwide survey.
The three most common types of software and fintech platforms used are planning software (73%), customer relationship management platforms (62%) and performance reporting software (56%), according to the survey conducted online by the Nationwide Mutual Insurance Co. and Zeldis Research.
Respondents said they mostly get access to these programs through their firms or third-party providers, according to the survey. More than half of those surveyed said CRM and specialized planning tools come from third parties, while compliance, forms management and fee billing platforms were the three most likely to be proprietary.
Despite significant fintech development, only 30% of survey respondents said they were extremely or very open to new software or fintech platforms; 45% said they were somewhat open, and 25% said they were only a little open or not at all open to changing platforms.
Even with the uptick in technology platforms usage, according to the survey summary, gaps remain in tasks those platforms do not adequately address. Financial professionals were asked what types of solutions would improve the annuity sales process for themselves and their customers. The three most common responses were a simplified suitability process (61%), accepting new business applications digitally (49%) and online capabilities to track pending business applications (38%).
Nationwide Aligning Business Structure
Craig Hawley, president of Nationwide Annuity, said in a statement that gaps in platform solutions that support the sale of annuities are an issue the industry is actively addressing and that “it’s one of the reasons Nationwide is configuring and integrating a new policy administration system” for its annuity business.
This new system will enable the company to improve both digital business tools and processes, as well as prioritizing simplicity and allowing a “more efficient experience” for its partners, according to Hawley.
Hawley also noted that financial professionals may not know that industry groups, including the Insured Retirement Institute, are working to shape and define the annuity industry’s digital standards. That lock of knowledge leads them to feel their concerns are not being addressed, according to Hawley. This belief was evident in the results of the survey, with two-thirds of respondents claiming they are “only somewhat or a little open to exploring new or additional Fintech platforms.”
By looking for and leveraging more digital tools, Hawley said financial professionals will be able to stand out and “create a more efficient and personalized” experience for their customers.You Might Also Like:

Amid Market Volatility, Insurers’ Focus Shifting to Annuities and Retirement Income

Survey Finds Participants Want Retirement Plans to Support Guaranteed Income

Inflows Into TIAA Traditional Hit 5-Year High
« Private Equity Sponsors ‘Cautious’ Amid Market Uncertainty