Difference and Differentiation: What next for investment platforms? - Paper - Page 18
Mike Barrett:
Planning for later life in 2043...
As a ‘younger’ adult (at least that’s what I keep telling myself…), I have used
various savings accounts in the last 20 years, from my first ‘in-branch’ only
card, to accessing my mortgage via my mobile today. The platforms for these
products have moved on as supporting technology has evolved. But that’s what
we as adults contend with – various platforms for various products.
My view of a typical day, as someone in their late 20s,
who is married without any children, is as follows. I
get the train to work, perform my job, grab some lunch
and then get the train home. At each stage of this
process, flexibility in payment has developed, and is
encouraged, which has meant most individuals have
moved with it to using mobile offerings. What are my
expectations of current platforms and products during
this process? I expect my mobile to be able to quickly
make a payment upon request from my available
product and I expect the other platforms to be able to
engage with this. To bring together all those different
entities and programs to deliver a service which is
easily delivered multiple times daily. Is this always
possible? At this moment in time, no it isn’t. In the
future will this become more of a necessity as more
providers become cashless? Absolutely.
So, what about this scenario in 20 years’ time when
I’m a ‘proper grown-up’? How will the platforms we
use further increase that flexibility and usability?
I’ll still be getting the train to work, grabbing some
lunch, and working but what might have changed?
Could you no longer need to pay using a separate app
for the train? Could you have one platform which will
pay for all these day-to-day interactions for example?
Could a merger of the platforms (a day-to-day platform
as it were) become available? Is there a way that
all the different ‘everyday’ providers could create
platforms which speak to each other to make that
experience quicker and more efficient? This fluidity
and experience for the ‘grown up’ individual would
be a welcome enhancement. But then again, will we
have the same platforms but they ‘just work a little bit
better’ with the only difference being I’ve now got my
house, and my future children are grown up, and I’m
looking ahead to later life?
But what else will I be concerned with at this point of
my career? As someone 20 years on in their 40s and
50s, many say this is when you are at your maximum
earning potential. At this stage, I will have a large
focus on how my life will change over the following
years, as I move towards starting to think about
retirement. I may be looking to engage with financial
advice or looking to understand how best to use my
money. But what would I want from a platform in this
position of my life, and how might this work? When
I think of saving during this period, I want ease. I
want a platform to make saving easy and give lots of
flexibility, whilst allowing me full access to understand
my options. Am I asking for too much? Could this be
something which is led by the workplace? Can the
workplace create and evolve a platform which will give
me ease and flexibility with my pension contributions,
and be the driver behind education for individuals
moving towards this period of their careers and lives,
without the need for financial advice for those not
able to do so?
Median annual earnings for
full time male employees in the
UK in 20225
£40k
£30k
£20k
£10k
£0k
22-29
30-39
40-49
50-59
60+
Age Range
Figure 11 - Median annual earnings for male
employees in UK
5
https://www.statista.com/statistics/802183/annual-pay-employees-in-the-uk/
18
