Hiya Gaine, Technical Consultant, TCS BaNCS - Life and Pensions

Artificial Intelligence (AI) has found its way to numerous applications in our daily lives. From customized social media feeds to personalized online shopping – it’s everywhere. The latest technological advancements in AI have made it possible to provide better user experiences leading to higher customer satisfaction. However, the US Retirement business has not capitalized on this fully to provide richer customer experiences and customized plans that can fit the participants’ financial needs. At a time when digitalization and on-demand services are becoming the norm, the Retirements industry needs a new generation of innovative solutions.

Potential Areas for Development through AI adoption:

Take the guesswork out of Plan Design: Align with participants’ long-term goals

  • Record-keepers can use data analytics on existing statistics and incorporate insights to create unique base plans for sponsors 
  • Plan sponsors can monitor performance on an ongoing basis against market trends and make necessary adjustments to their corporate match program 
  • Natural language processing (NLP) based chatbots can automatically resolve queries in a self-service mode, provide general information, guidelines, and advice participants on accessing the corporate match program optimally

Simplify Plan Governance: Optimize and adapt to changing regulations

  • Plan sponsors can contextualize participant communication based on past user behavior and interactions through AI-based analytical KPIs on participants’ expectations. from the plan
  • Routine task automation to monitor risk and ensure regulatory compliance will reduce hours of manual work
  • Prescriptive analytics can potentially guide the participants or record keepers on the self-service journey towards corrective action, while helping plan sponsors to identify improvement areas within any business process

AI-backed Investment Strategy: Maximize fund utilization 

  • Record keepers collect a variety of statistics on asset flow and fund data on a regular basis. This data, along with participant profiles can be used to decide fund allocation and as feedback for plan design
  • Additionally, robo-advisors can educate participants on asset allocation, fund usage and better overall retirement planning

Improve Participant Engagement: Reduce Churn / Opt-out

Data on communication types, channels and verbiage is already available with the plan sponsors. They can also have access to participant queries and complaints via digital channels like chatbots, contact center and IVR logs. When advanced sentiment analysis is run on this data, it will help find the participants’ pain areas and identify the participants who are more likely to opt out. Addressing these areas will help sponsors optimize their communication for better reach and to deliver a better customer experience.

With such needs for a next generation experience-led, efficient IT ecosystem for the Retirements industry, solutions that have an array of AI-ready levers like contact center, plan-sponsor/participant portal and chatbots automatically become imperative. These solutions, when paired with an advanced analytics/insights engine can generate generic, plan-specific as well as participant-specific insights for driving efficiency and innovation needs. 

Disclaimer: Views or opinions represented in this blog are based on the author’s own research and do not represent TCS BaNCS.

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