Quai performance indicator: how WealthOS is enabling innovation in wealth management and pensions product management
In many sectors of the economy there are unsung heroes. Businesses that provide an essential service in the background to enable great customer experiences in the foreground.
Quai Digital is precisely that type of firm. As the creator of a pioneering savings and investment engine, it makes it easier for a range of players in the wealth management sector to offer digitised products, such as ISAs, general investment accounts (GIAs) and pensions (SIPPs).
Since its launch in 2011, the company has built an enviable portfolio of clients who all have the same goal – to deliver services that meet their customers’ needs in an era of change.
Pensions: a market in need of innovative solutions
With economies sputtering, technology changing rapidly and regulation ever expanding, the UK wealth management industry faces significant challenges.
Pain points and vulnerabilities, such as legacy IT infrastructure and large inflexible workforces, are being sorely exposed in the race to keep up with accelerating digital innovation.
But perhaps more importantly, pension holders are frustrated by rigid drawdown processes, poor customer support and an absence of products that allow people to turn accumulated funds into meaningful income in retirement.
Additionally, economic woes are making it harder for households to save for retirement. Research by the Institute for Fiscal Studies has shown that around a fifth of private sector employees are not paying anything into a pension, while nearly two thirds of people are saving less than 10% of their earnings for retirement.
Consequently, wealth management product providers are under immense pressure to become more efficient while meeting the increasingly complex needs of modern consumers.
Pension KPIs (key pain point indicators?)
61% of working age adults invest less than 8% of earnings into a pension
12% of people have “dramatically or slightly” reduced their contributions
£530,000 – the amount needed in a pension pot to live comfortably in retirement
£81,100 – the average pension pot for someone aged 65 and over in the UK
One in seven retirees have had to go back to work
How Quai Digital is enabling wealth management innovation
Anyone who has observed Quai’s rise over the past decade will have noticed a pattern. That is, its founders are adept at spotting opportunities to meet business and consumer needs in a changing world.
This ability stems right back to Quai’s original goal of filling a void left by the closure of a department within a large provider of wealth and workplace administration services.
More recently, the company has extended its offering beyond corporate pensions administration solutions to serve ambitious fintechs looking to widen their product range, in addition to a rapidly expanding IFA market.
Today, it’s true to say that Quai’s savings, pensions and wealth product solutions are empowering financial services providers to address a growing appetite among consumers for solutions that make their investments go much further.
“Quai is a recognised leader in digital wealth management and for us, this collaboration validates our unwavering commitment to building the ideal digital architecture for modern wealth management middle and back-office platforms.”
Anton Padmasari, CEO and Co-founder WealthOS
The challenge: what Quai Digital needed from WealthOS
With demand for diverse wealth management product types accelerating, Quai needed to add new functionality to its investment and pension engine. It also needed a solution that was configurable and responsive to a fast-changing marketplace.
It was then that Quai learned about WealthOS and was instantly impressed with its innovations in straight-through processing, automation, APIs and cloud technology.
“I would say WealthOS is at least two years ahead of other platforms in the pensions space. When it comes to their straight-through processing technology, APIs, responsiveness and expertise, no one can touch them right now.”
Tony Webb, CEO Quai Digital
Since partnering with WealthOS in early 2024, the business has launched digital drawdown pensions, workplace SIPPs and Lifetime ISA products, which have been embraced by clients who collectively serve some 250,000 retail customers.
Working with WealthOS has allowed Quai to shift from a reliance on a range of disparate third-party tech vendors with different approaches to a consistent provider aligned with its innovation trajectory and culture. More product types and innovations enabled by WealthOS’ technology are currently in the works for launch next year to further expand Quai’s offerings.
The solution: how WealthOS stepped up
To enable Quai to strengthen its product offering, WealthOS provided the following:
Fully-composable software
WealthOS’ cloud-native, API-powered middle-and-back office platform, with its infrastructure and ecosystem of third-party vendors, is modular and can be easily configured to meet each B2B client’s unique needs. This is empowering wealth management businesses to build and launch scalable and feature-rich digital financial solutions.
Counsel and advice from a team with deep wealth management expertise
In addition to a deep understanding of the wealth management industry and its myriad products, WealthOS founders have decades of experience in large-scale platform migrations and enhancements. This includes senior roles with wealth management businesses and institutions that underpin the world’s financial markets – bringing an unparalleled rigour to their approach and ensuring security, compliance, reliability, availability and scalability.
A commitment to continual innovation
Not only is WealthOS truly pioneering in its development of straight-through processing and modular product solutions for the wealth management sector. The business is also committed to staying at the forefront of innovation in modern architectural infrastructure and security standards. As clients evolve their needs, WealthOS will always remain one step ahead, building the technology of tomorrow.
Where next for Quai Digital and WealthOS
Since the beginning of the relationship, in addition to launching two new products, Quai has embarked on a platform migration programme.
This is purely a data migration rather than a more risky full-scale funds migration. Nonetheless, it has allowed Quai’s clients to upgrade their backend functionality, access new features and implement automation – without disrupting customer experience on the front end.
And as these businesses move forward, they will be able to do so with infinitely more efficient administrative processes. At the same time, their customers will benefit from the control and flexibility that comes with near real-time access to retirement savings. No longer will they have to wait months for a response to requests for withdrawals.
The two businesses are also looking at launching modern products, such as digital cash and treasury management, to help clients meet evolving consumer demand. This is driven by a shared desire to respond quickly to the latest market and product trends.