This is part two of our write up of our webinar What do consumers want & expect from Pensions Dashboards?
If you haven’t yet, catch up on part one here.
It’s apparent that referring to the pension dashboard is misleading. How do you think the industry might help consumers understand more about dashboards and the problems they are solving?
Richard: There absolutely will be multiple dashboards. It's crucial to help consumers understand their purpose and the problems they solve. Different consumers have varying needs, and dashboards must cater to these diverse requirements. Some users may want to check their pension through their banking app, while others might prefer to consolidate their pensions with a specific provider or use the government's MoneyHelper dashboard. Although all dashboards will show the same information, providers will offer them within different existing customer journeys, making them relevant to specific consumer needs at various stages of their financial lives.
It's important to note that consumer behavior cannot be legislated, and people tend to gravitate towards companies that align with their needs and preferences. For example, Lloyds Bank offers a pension view alongside their banking app, which has increased engagement and understanding. However, consumers may also seek providers that focus solely on pensions, as their priorities align more closely. The industry must become more aware of these consumer preferences and behaviors, ensuring that dashboards cater to different needs and expectations, ultimately providing a better user experience.
Is the government agnostic about which dashboards people use? And what does consumer success look like from Government’s perspective?
Chris: While I cannot speak on behalf of the government, I can provide insight from the Pensions Dashboard Programme (PDP) perspective. The government recognizes that there isn't a single use case for pension dashboards, and it's crucial to ensure that various use cases are accommodated in the future. The MoneyHelper dashboard will be the first confirmed dashboard available to the public, providing a government-backed, independent option that serves as a gateway to other offerings and free guidance from the Money and Pensions Service.
The government aims to build an infrastructure that allows for growth in the dashboard market, making them widely available from different providers and accessible through various platforms, such as banking apps or employee portals. This approach offers consumers choice and convenience in meeting their pension needs. As the market develops and users determine their preferences, the government wants the market to be responsive and provide a wide range of choices and benefits.
For pension dashboards to be successful from the government's perspective, they must be easily accessible, trustworthy, and provide satisfactory service with adequate protection - users need to trust the information and the provider, and know that if something goes wrong, there's an easy way to address it. By enabling an active and flourishing dashboard market, the government aims to help consumers meet their diverse pension needs, acknowledging that there isn't just one use case, but many.
What are your thoughts on which dashboard people will want to use? Or, more precisely: Which dashboards will different types of consumers want to use?
Alastair: Predicting which dashboard people will want to use, or more precisely, which dashboards different types of consumers will want to use, is quite challenging. It's difficult to determine consumer preferences until the dashboards are launched and used in real-life situations. People don't typically have a "dashboard day," but rather, they encounter these services while going about their daily lives, such as at work or while using other online services.
It's essential to work with consumers' preferences and go where they already are. Financial service providers, such as banks and pension providers, may have an advantage in this regard. However, the willingness of people to consent to different providers will play a significant role, as sharing sensitive financial information is a concern for many. Some individuals may prefer using a government-backed service like MoneyHelper due to its perceived trustworthiness.
The key to overcoming these hurdles is to present a strong use case and effectively communicate the benefits of using a particular dashboard. Although it remains to be seen which dashboard will be most popular, having multiple providers can increase reach, engagement, innovation, and ultimately lead to better outcomes for consumers.
What is early research telling us about which dashboards people might use, and why?
Richard: Early research reveals interesting insights into consumer preferences. While there is often a gap between what people say they will do and what they actually do, the reasons behind their choices can be quite revealing. In one study conducted by Moneyhub, 60% of respondents said they would prefer to use a commercial dashboard, while 40% opted for a government dashboard.
For those who chose the government's dashboard, impartiality was a key factor. These individuals appreciated that it seemed central and provider-agnostic. On the other hand, 10% of respondents preferred using another app, like a wealth app, because they believed that pensions are not the government's business and a dashboard should not be linked to a provider. Trust was also crucial for those who would use their bank's dashboard, as they relied on the security and reliability of their banking app for financial information.
Lastly, a third of respondents said they would use their pension provider's dashboard, as they associate pensions with their provider and expect them to have a dashboard. The variety of responses and reasons highlights the diverse preferences among consumers, indicating that multiple dashboards may be necessary to cater to different needs and expectations.
What sort of innovation do you think we can expect from the multi-dashboard landscape?
Alastair: We can expect innovation in various aspects of financial management and support. The benefits of this landscape will likely include advanced tools for analysing personal finances, identifying life moments, and providing tailored support. There is an ongoing debate about the advice and guidance boundary, with industry proposals for personalised financial guidance.
Consumer groups are cautious about this, but there is potential for regulators to provide clearer guidance on how firms can support customers. This may include highlighting tax implications or pointing out differences in types of annuities. Clarity in this area could lead to more effective support for consumers without necessarily shifting the contentious advice and guidance boundary.
As the dashboard program progresses, it is crucial to have a clear, credible, and updated plan, including a launch date for consumers. This should involve extensive testing before and after the launch to ensure a smooth and effective rollout. Learning from other sectors and international experiences will also be invaluable in refining the dashboards and adapting them to evolving consumer needs and preferences. The multi-dashboard landscape promises to be an ongoing process of innovation, testing, and improvement to serve consumers better.
Chris: Innovation can be expected in several areas, such as improvements to individual dashboards, enhancements across all dashboards, and the placement of dashboards. As standards are updated over time, we will gain insights into what works best and how individuals use dashboards effectively. The type of information displayed on dashboards will also likely evolve, with elements like costs, charges, types of investments, and pensions in payment being integrated in the future.
The timeline for implementing these innovations is currently under review, with an announcement from the Minister for Pensions expected before the summer recess. The primary goal is to establish a feasible and achievable timeline that meets the objectives of the industry, dashboard providers, and consumers. Ensuring that the right product is launched for consumers is crucial, and the public launch date will be determined once a clear vision of what can be delivered is established. While details are limited at this stage, the multi-dashboard landscape is guided by a strong set of principles aimed at improving the consumer experience.
Richard: We can expect innovations that address consumers' core questions: What have I got? Is it enough? And what can I do? Different organisations will cater to various consumer needs, providing more content and narrative explanations to help users understand their financial situation better. For instance, integrating open finance can enable seamless extra contributions to pension funds, making the process painless and frictionless.
In terms of timeline, the focus should be on consumer needs rather than data provision. Moneyhub is hosting a series of webinars to refocus the debate on consumers, exploring topics such as whether organisations will build their own dashboards or partner with specialists. Additionally, a LinkedIn group has been created for those interested in developing dashboards, fostering collaboration and idea-sharing. Some organisations have already chosen to white-label Moneyhb's dashboard, leveraging existing expertise instead of building their own. Overall, the multi-dashboard landscape will see innovations that prioritise consumer understanding and engagement in their financial journey.