# Brighter financial futures will be powered by better infrastructure Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-13 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: The Future of Retirement: How Fintechs Are Revolutionising Meta Description: Discover how ambitious fintech companies are revolutionising the financial services industry to address the challenges of an ageing population and closing the URL: https://financedigest.com/brighter-financial-futures-will-be-powered-by-better-infrastructurehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-two-monitors-of-computers-with-charts-and-graphs-in-officeb89eudmuhg-1736838185483-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/sam-handfield-jones-450x450-1736838185460-compressed.jpg)_ _By **Sam Handfield-Jones,** co-CEO of_ [_Seccl_](https://seccl.tech/) _, the digital custody and investment API provider that’s part of the Octopus Group_ News flash: we’re all living longer. And while that won’t come as a shock to most of us, the extent of our ageing population might. By 2042, nearly [one in four](https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/howwouldyousupportourageingpopulation/2019-06-24) of us here in the UK will be over 65. Great news, right? Well, sort of. I think for most of us, a longer and more prosperous life is something to celebrate, but it does spell some unwelcome news for our collective finances… To keep our already creaking state pension afloat, the Government is now recommending that the national retirement age be raised to 68, a full seven years earlier than originally planned – in 2039, rather than 2047. Who knows, by the [time today’s millennials reach their autumn years](https://www.financedigest.com/30-years-of-excel-lence-time-to-move-on.html "30 YEARS OF EXCEL-LENCE: TIME TO MOVE ON?"), there could be no state pension at all. Which might not be so bad, if we’re all financially prepared and capable of going it alone. But [nearly half of us](https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/howwouldyousupportourageingpopulation/2019-06-24) (43%) have no idea how much we’ll need to retire, while others worry, quite rightly, that they won’t have enough. What’s more, those who need the most help are the least able to afford it. As part of its consumer research in 2018,  the Financial Conduct Authority (FCA) found that [just 9%](https://www.fca.org.uk/publication/research/famr-interim-consumer-research-report-2018.pdf) of people sought qualified financial advice over the previous year, and study after study shows how advisers are regularly forced to turn away less affluent clients, with the so-called ‘advice gap’ getting wider. To put this into perspective, only 16% of advisers in 2019 would take on a client with less than £100,000 – down from 50% in 2014. Depressing, right? Luckily, it doesn’t have to be like this. **Why ambitious [fintechs are leading](https://www.financedigest.com/three-waves-of-fintech-disruption-leading-trends-for-the-year-ahead.html "Three waves of Fintech disruption: Leading trends for the year ahead") the charge** The pace of technological change that we’ve experienced in the last two decades is astonishing. YouTube was founded just 16 years ago. Airbnb and Uber have been with us barely ten years, and Deliveroo not much more than five… All of these companies have [forever changed](https://www.financedigest.com/how-ai-will-change-forex-trading-forever.html "How AI will change Forex Trading forever") how we live, work and travel. And, thankfully, there’s no shortage of ambitious pioneers here in [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services"), either. Alongside the much-talked-about growth in digital banks, the past few [years have seen a wealth of new offerings in the arena of investments](https://www.financedigest.com/liverpools-new-chinatown-perfectly-positioned-for-property-investment-this-chinese-new-year.html "Liverpool’s New Chinatown perfectly positioned for property investment this Chinese New Year") and advice – each on a mission to bring financial opportunity to everybody, regardless of their level of wealth. Companies like [Chip](https://www.getchip.uk/), [Penfold](https://getpenfold.com/) and [Wombat](https://wombatinvest.com/) are leading the charge, with their mobile-first approaches to financial planning, retirement saving and thematic investing. And despite the well-publicised struggles that so-called ‘robo’ offerings have faced, I’ve no doubt that we’ll [see more and more entrants join the fray in the years](https://www.financedigest.com/the-next-upcoming-years-to-see-the-gastric-electric-stimulators-market-grow-kinetically.html "The Next Upcoming Years To See The Gastric Electric Stimulators Market Grow Kinetically") to come. The problem isn’t a shortage of ambition – it’s that ambition is being held back by infrastructure. **_Outdated technology is slowing us down_** The [infrastructure that underpins investments](https://www.financedigest.com/invest-in-infrastructure-to-escape-the-starvation-cycle-warns-leading-nonprofit-sector-strategist.html "Invest In Infrastructure To Escape The ‘Starvation Cycle’, Warns Leading Nonprofit Sector Strategist") is inefficient, inflexible and unwieldy – built on siloed, outdated software and patched together by quick fixes and manual processes. Typically, a financial advice firm will use as many as [five standalone systems](https://www.langcatfinancial.co.uk/product/a-disconnected-world-the-advisers-reality/) in the delivery of advice, planning and portfolio management, and two investment platforms. The problem is that these systems don’t integrate, or they don’t integrate easily enough, meaning [firms must rely on manual processes and keying in the same data](https://www.financedigest.com/sterling-holds-firm-after-uk-jobs-data-muddies-rate-outlook.html "Sterling holds firm after UK jobs data muddies rate outlook") via different tools.  This makes for slow and error-prone work. Is it any wonder most [financial advisers](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") can only afford to help the most affluent? It’s not just advisers who suffer either, [fintechs can design the most intuitive and compelling user experience](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention") in the world, but it’s all for nothing if they can’t easily or affordably get to market. And outdated technology is anything but easy or affordable. For one, the technology that allows [investors to buy and settle investment trades](https://www.financedigest.com/how-to-begin-investor-trading-in-australia.html "How to begin investor trading in Australia"), or hold in tax wrappers like ISAs and pensions, tends to be too expensive for firms who are just looking to get a foothold. What’s more, the job of looking after client assets means firms having to negotiate with large ‘custodians’, who are used to working with firms that [manage billions](https://www.financedigest.com/french-asset-manager-amundi-posts-q3-outflows-of-13-billion.html "French asset manager Amundi posts Q3 outflows of billion"), not young and asset-light fintechs. Entering the investment or advice market has always been costly and slow, but all that’s about to change… **It’s time to rebuild the [infrastructure of investments](https://www.financedigest.com/how-a-british-tech-brand-can-maintain-category-leading-position-and-continued-growth-by-investing-in-the-uk-people-and-infrastructure.html "How a British tech brand can maintain category leading position and continued growth by investing in the UK people and infrastructure") and advice** Just imagine, for a moment, that offering an investment solution in an app was as simple as [embedding a Google Maps integration](https://www.financedigest.com/why-embedded-finance-will-be-integral-in-the-future-of-b2b-marketplaces.html "Why embedded finance will be integral in the future of B2B Marketplaces"). I’m talking about truly plug-and-play access to [financial markets](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?"). [Fintechs would get to market](https://www.financedigest.com/2021-and-the-fintech-market-bonanza.html "2021 and the fintech market bonanza") fast. Innovation would be shared. Ambitious businesses of all [shapes and sizes](https://www.financedigest.com/all-shapes-and-sizes-how-to-match-your-technology-to-your-finances.html "All shapes and sizes: How to match your technology to your finances") could work together more easily than ever. And now just think what that could mean for our [financial futures](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution "). Everybody would be able to [access the financial markets easily and affordably](https://www.financedigest.com/hair-care-shouldnt-break-the-bank-transplant-surgery-should-be-accessible-and-affordable-for-all-men.html "Hair-Care Shouldn’t Break The Bank – Transplant Surgery Should Be Accessible and Affordable For All Men"). All savers – not just the most affluent – would be able to seek high-quality advice on demand – whenever and however they want. And more people would head into [retirement knowing](https://www.financedigest.com/5-annuity-tips-to-know-for-2023-retirement-planning.html "5 Annuity Tips to Know for 2023 Retirement Planning") their nest egg would last the course. It’s what the team and I are dreaming of here at [Seccl](https://seccl.tech/). It’s a [brighter financial future](https://www.financedigest.com/technology-skills-and-servitization-a-brighter-future-for-manufacturing.html "TECHNOLOGY, SKILLS AND SERVITIZATION: A BRIGHTER FUTURE FOR MANUFACTURING?") – and one that all starts, above all else, with better infrastructure. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---