December 2011

Auto-enrolment – a role for advisers?

Although Auto-enrolment is on the statute books, the debate on its pros and cons continues. While Scottish Widows believe that auto-enrolment should carry on full-steam ahead, pensions ‘guru’ Steve Bee has suggested that a mass boycott might be the best way to ensure there’s proper consultation before the launch time table is fixed.

Whatever the result, it’s clear that the jury is still out on its impact, particularly on the important SME sector. With a new entrant launching in the shape of the Danish firm ATP, the next 12 months could well see an increase in demand for advice and guidance on the topic, especially in the small corporate area.

Not withstanding the recent controversy around delaying the deadline, many Employee Benefit commentators still believe that worksite marketing solutions will become a high growth channel for the sector as a result. And we believe that developing the technology to support that growth will be crucial to its success.

Mobile payments

With Starbucks announcing it has now processed more than 20 million transactions since January and Google Wallet now launched, it’s clear that mobile payment is no longer small beer.

Right now this may seem of little importance to IFAs, but at Avelo we think that this is a trend that we shouldn’t ignore. While it’s unlikely that a client will choose to pay an annual fee at the swipe of a phone, with payments forecast to rise to $30.9 bn by 2015, how long before someone asks you if they can pay smaller sums that way?

Avelo has partnered with Cirrus Management Solutions to produce a white paper discussing the rise of social and mobile technology within financial services, and how those who ignore it, do so at their peril.

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