The Rise of the Robo-Advisers
By Patty Kujawa
In the defined contribution world, being a bigger record-keeping provider is the only way to survive today. Why? Plan sponsors are demanding more from these suppliers than ever before and want it at very little cost.
As a result, larger providers are gaining ground, and smaller ones are disappearing.
“It’s really hard to stay in the record-keeping business without lots of scale,” said Robyn Credico, defined contribution practice leader at consulting firm Towers Watson & Co. “I can count on one hand how many providers service” the large plan market today.