SIPPs must appeal to a broad market of mass affluent customers in order to reach their full potential, according to IT solutions provider Mastek.
The firm says older SIPP admin systems need to be replaced in order to increase the efficiency of the product and reach the mass market.
Mastek’s business growth and development director, Steve Williams, says a combination of simple solutions can enhance the abilities of SIPP administrators.
He highlights internet self-service and dealing, automated back office processes and straight through processing as vital elements in widening the appeal of SIPPs.
“None of these technologies is particularly revolutionary,” he says, “but a number of SIPP providers have highly manual administration and are in danger of outgrowing their current systems, exposing themselves to regulatory and financial risks as well as to the threat of growing competition.”
Mastek believes the UK market could potentially reach £500bn but says cutting costs and allowing customers to be more hands-on is vital in achieving this goal.
The UK SIPP industry is currently worth £50bn, with about 350,000 customers, mostly in the high net worth category.
Williams says providing a high quality service and reducing admin costs through efficient use of technology is likely to attract major attention from mass affluent customers and will allow the market to grow rapidly.
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