Firms should not decide against launching Child Trust Funds as the market, which is worth a minimum of £175m per year, could prove to be a good long-term commercial opportunity, says Practiv.
The consultancy firm says CTFs will still be profitable with the 1.5% price cap on charges. This is because even products will low charges, such as CTFs, can be turned into profitable products as long as the right processes are in place, Practiv says. Firms using the right mix of offshore data entry, electronic data capture, internet and straight through processing could make great cost savings, it adds. Martin Davies, principal consultant at Practiv, says: "Providers are sitting very much on the fence over CTFs because they are drawing negative parallels with other lower products...
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