Vontobel digitizes the Swiss market for pension products with its new Pension Investments platform - In parallel with the new platform, Vontobel launches innovative pension products for the pillar 3b

28.09.2018 Reading time: 4 minute(s)

Vontobel uses its many years of experience and expertise in the platform business with structured products to digitize the Swiss market for pension solutions with an innovative platform. Until now, analogue processes with largely paper-based workflows have dominated the market for pension products. The customer experience has been largely cumbersome and transparency for end customers has been lacking. With Vontobel's new Pension Investments platform, client advisors from more than 60 banks and 500 independent asset managers can offer their clients pension solutions and banking services from a single source at significantly lower costs thanks to the scalability of the digital platform. Especially in the current low-interest environment, there are attractive pension solutions with an investment character.

Vontobel has leveraged its years of experience and expertise in the platform business with structured products and now launches its new Pension Investments platform. Pension Investments is based on the proven technology of deritrade®, Vontobel's successful platform for structured products. The integration of Pension Investments into the deritrade® environment will enable client advisors from more than 60 banks and 500 independent asset managers to offer their clients pension solutions and banking services from a single source at significantly lower costs thanks to the platform's scalability. "With our extensive know-how in the platform business and our expertise in the range of innovative investment products, we are driving forward the digitization of the Swiss market for pension products for the benefit of clients and are once again demonstrating our innovative strength in this area," says Roger Studer, Head Vontobel Investment Banking. "The fully digitized workflows and scaling provide clients with easy and quick access to insurance products as well as an improved performance. This significantly increases the customer-friendliness of insurance and pension solutions," adds Eric Wasescha, Head Platform Solutions at Vontobel Investment Banking. Moreover, client advisors can directly book the concluded policies into client custody accounts, giving clients an improved overview of their financial situation.

Due to the continuing low interest rate phase, it is currently hardly possible to generate a return on personal savings. In recent decades, interest rates have moved downwards as a megatend. A trend reversal is not visible and Japan's experience shows that low-interest phases can last a long time. Given this environment, it is difficult for private investors to invest their savings with low risk in such a way that at least some return is earned. Although it is possible to receive income through investments in shares, this is associated with a significant risk of price losses. Even with single premiums in life insurance policies, which have traditionally come with a capital guarantee, the accustomed returns can no longer be achieved. These capital guarantees are also difficult to plan in the present interest rate environment.

The potential in the Swiss pension market is still far from exhausted

  2016 2017
Actuarial reserves for life insurance policies without BVG* 107'257'333 107'581'931
Actuarial reserves for life insurance policies BVG* 159'011'406 161'529'781
BVG* outside life insurance 823'943'000 893'092'000
Total 1'090'211'739 1'162'203'712

* The Federal Act on Occupational Old Age Survivors’ and Invalidity Pension Fund (BVG)


Combining pension solution and investment product creates attractive returns for investors

The persistent low interest rate situation, combined with demographic developments, has had a meaningful impact on the Swiss pension system, which has come under further pressure with the rejection of the 2020 pension reform. As future pensioners have to expect lower pensions from the first two pillars, it is advisable for them to make private provision to maintain their previous standard of living after retirement.

Vontobel is the first to launch three new tranche products on the new platform. Investors have the option of taking out a life insurance policy that includes an investment product structured by Vontobel. With tax-privileged tranche products (pillar 3b), end customers can invest money and provide financial security for their old age. The products consist of one-time investments in a life insurance policy with a fixed term of ten years.

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Vontobel Investment Banking
Vontobel Investment Banking creates specialized investment solutions for private and institutional clients. We follow a customer-centered digital business model, manage risks carefully, and build compelling service packages to get our clients ahead. We emphasize on truly understanding our clients’ needs. We use our expertise to anticipate trend reversals, risks as well as opportunities, in order to successfully exploit them for you. We only do, what we master and develop solutions we believe in. We take clear decisions and act with determination. We are proud of our specialized offering, which includes structured products, transaction banking, corporate finance, brokerage, as well as solutions for External Investment Advisors, and digital platforms. For our competence in Research, we regularly get awarded. This is how we create added value for you.

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