Technology
Ahmed mentioned how Franklin Templeton integrated its goals optimisation engine, which is a goals-based dynamic probability driven income algorithm, into different technology platforms and offering it in workplaces.
He said: “Retirement income planning has to be holistic, and it has to be probability driven. So it's more of a dynamic model that takes a number of inputs.
“We have the same bandwidth issue in the US as in the UK. There's not enough human advisers to serve that. So our view is to give advisers the technology and providers so they can scale out and they can work with more clients.
“We have a lot of advisers and consultants that have the plan relationship at the company level. They deliver it that way and they can work with hundreds and 1,000s of employees versus one-on-one.”
Hollingworth believed the technology was already available for a scaled solution to happen but also hoped the FCA would soon provide clear guidance on their advice guidance boundary review so that advisers knew where they could go with this.
“If you think about vulnerable customers, for many in that mass affluent category, it's complex but it’s not beyond a generative AI system to be able to help them navigate that. They probably have a number of common questions. So one answer to one question will lead you to another solution that's capable of being delivered now.
“It’s just a question of having the guidance from the regulator that allows them to do that, we know wealth managers and asset owners who have got their solutions, and they're building those, and hopefully they'll be ready.
“We talk about this as today's problem, but exponentially it just gets bigger and bigger as millions of people who've been saving into auto enrolment over the last decade start to reach retirement and are going to need some help,” he added.
alina.khan@ft.com
