Fintech DTC brands change the face of every aspect of consumer finance. The likes of Monzo and Revolut in consumer banking, Urban Jungle and Brolly in insurance, and BUX in investment make waves in their respective categories. PensionBee is now changing the way consumers manage their pensions. In these questions and answers, we talk to Jasper Martens, CMO, PensionBee, about why customers switch to their mobile phones to manage their finances, and how to disable PensionBee for an old class.
Why do you need PensionBee retirement industry?
Pensions are likely to be one of the least interesting products to deal with, and are often thought to be complex and boring. Despite this, much of the pension industry has historically focused on offering customers thousands of products to choose from with a more favorable customer experience for the 19th century. For example, most traditional service providers communicate only by mail, sending customers paper-based returns of business Paper that is never read. All this leads to consumer confusion and, ultimately, inaction – but it is extremely important to outperform your retirement savings. People move jobs more than ever, so most of us end up with multiple pensions from previous jobs that are hard to follow. However, pensioners are not active in telling us what to do with our pension funds, and international financial institutes can be expensive.
By focusing on ease, full transparency of fees and termless communication, our customers work on their savings in a way that many people say is impossible. We were able to demystify pensions and attract people of all ages – in their thirties, forties, fifties – who should save for retirement, but who might have been postponed in the past by complicated products.
We help savers integrate their old pensions into a new plan in an easy way. They sign up for old employers or service providers, and we transfer and merge their old pension pots within weeks. Customers can then manage their pensions such as managing their bank accounts – access their balance and make contributions 24 hours a day, seven days a week via our web apps or mobile devices.
Why do customers rely on mobile financial service providers so quickly?
People are busy, and their time is valuable, so they want to settle their finances quickly and simply so that they can confidently continue in their jobs, their families and so on. Gone are the days off work to visit the bank and pay your bills and catch up with the life supervisor. Now you can do these tasks with just a few clicks from your mobile phone while you're traveling for work or sitting on the couch.
The arrival of open banking has allowed consumers to control their financial statements in a way they never had before. They have to decide who can use it and how, which ultimately leads to more choices and competition in the financial services industry. There are plenty of great fluctuations that provide much-needed solutions to consumers – a fact that undoubtedly keeps big banks awake at night.
What are the most effective marketing channels to spread word for PensionBee (e.g., social, digital, word of mouth)?
We've invested a lot in our brand and marketing – many of our customers came to us initially on social media, but this has expanded in the last year. We have also expanded to new channels like TV, which has helped drive new customers to our products.
We also acquire clients through our partnerships with like-minded companies such as Starling, Yolt and Moneyhub, which enabled subscriber customers to see their full financial position, with their direct pension balance displayed along with their real current account balance.
We have learned that you cannot underestimate the power of word of mouth! Our clients have awarded PensionBee 9.2 excellent Trustpilot points, based on over 1000 ratings, making us the most trusted pensioners on this platform. We also have over 65,000 social media followers.
As PensionBee evolves, how will you ensure that you continue to bring in new customers?
Everyone says this, but at PensionBee, our customers are at the heart of everything we do. We have designed all our processes to direct feedback from the client to our implementation – from live chat, to social media, to digital scanning to phone calls. We don't guess what they want, we ask them, which is why the product roadmap is entirely driven by customer feedback.
Despite the rapid growth we have achieved, we have been able to ensure that each new client remains associated with a dedicated customer success champion who takes care of them and their pensions. They are the first point of contact for our customers and will manage their account setup and transfer from start to finish, an unprecedented level of customer service in our industry. Along with our award-winning technology, this is what sets us apart.
How have you used external financing to support your growth so far?
PensionBee is funded by a small group of private investors, and our largest external shareholder is State Street Global Advisors who acquired a minority stake in the company in 2017.
What do you hold next year for PensionBee?
The next 12-18 months include lots and lots of growth. The UK pension market set to exceed £ 1 trillion by 2024, so the opportunity is enormous. In addition to the growing awareness of our brand, we will continue to invest in areas such as developing our technology to ensure that we can better serve our customers and to be the clear choice for consumers seeking to control their pensions.
When we do not build the best pension product in the UK, we are excited to fight for the rights of pension savers, be it by cracking down on hidden costs and a lot of terminology or campaigns for consumer substitution guarantees. While much has been achieved, much remains to be done in order to make the pension industry more just and accessible.