One year ago BeFrank was granted a licence by the Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) to operate as the first premium pension institution (PPI) of the Netherlands. With the arrival of eight PPIs in a single year, the market for defined contribution pensions has rapidly developed into a highly competitive playing field.
A Motivaction survey conducted among advisers (June 2012) confirms this. The pensions market is undergoing radical change, with traditional schemes becoming less and less affordable due to the current economic climate and other factors. Consultants are seeing a shift from guaranteed defined benefit schemes to defined contribution schemes, as employers seek to keep costs in check.
The Motivaction survey also showed that consultants prefer simple and transparent pension schemes that are easy to explain to customers. PPIs respond to the need for renewal and innovation in a market where established players are inclined to cling to traditional pension schemes.
BeFrank CEO Folkert Pama: “We were received with open arms by the pensions market and recognise the need for innovation and clear communication. Powerful distribution is also crucial. So we’re delighted that BeFrank achieved such high ratings in the Motivaction survey in the areas of competitive pricing, relationship management, clear communication to members, administrative performance and efficiency.”
The market is crying out for modern pension administrators. Many companies, large and small, have opted for a pension with BeFrank, including: OC&C Strategy Consultants, Brunel, Bol.com and, recently, Accor Hotels.
Pama, continues, “All this confirms we are on the right track. The pensions market is a highly dynamic environment, which makes further innovation and development all the more important.”
BeFrank is the first-ever premium pension institution (PPI) in the Netherlands, combining BinckBank’s online distribution power with Delta Lloyd’s pension know-how. The result is a fresh and innovative pension administrator in the Dutch market. BeFrank has already won the Pension Product of the Year Award on the strength of its transparent low-cost pensions. Its focus is on defined contribution pension schemes for employers and employees (2nd pillar).