18 March 2018

Record Keeper Consolidation Will Continue

Share This Story

The consensus among DC industry consultants, executives and experts is that record keeper consolidation will continue, driven by rising technology costs, lower fees and increased intellectual capital needed to remain competitive. The prognosis is for fewer providers — which will result in higher fees and worse service.

In a P&I article this month, Callan said that its clients used 40 record keepers in 2006 but just 26 last year. The number of national DC record keepers servicing all markets is now 42, according to NAPA’s National 401(k) Record Keepers list. Industry consolidation has sped up in 2014, with six deals already — matching all of 2013.

The providers which are best positioned are those that can cross-sell other services like proprietary funds, including TDFs, TRFs, stable value and managed accounts.

Click here for the full article at NAPA Net.

Join Our Online Community
Join the Better Way To Retire community and get access to applications, relevant research, groups and blogs. Let us help you Retire Better™
FamilyWealth Social News
Follow Us