Fintech WealthKernel has launched self-invested personal pension (Sipp) technology to allow other businesses to offer this pension wrapper to their clients.
WealthKernel has used application programming interface (API) technology to allow fintech firms and other financial businesses to offer flexible Sipp products to their customers in a digital format.
Essentially, WealthKernel provides the background investing technology, which also includes handling the regulatory and compliance side of things on the providers' behalf.
In turn WealthKernel's clients pay a fee to use the technology.
WealthKernel said the API integration makes it easier for businesses to slot the Sipp functionality into their existing technology, which allows them to go-to-market a lot quicker than if they were to build it entirely in-house.
The pension wrapper will also accept paper-based pension transfers.
Penny, a pension tech firm that uses automation technology to help users find and transfer all their pensions savings into one place, is one of the first businesses to integrate WealthKernel’s digital Sipp.
Karan Shanmugarajah, chief executive officer of WealthKernel, said: “Sipps are an incredibly valuable savings vehicle that allow people to have more say over how their pensions are invested, and we’re thrilled to be helping bring them to a wider audience.
“Thanks to seamless integration with our APIs, fintechs large and small will be able to support their customers with greater flexibility for their retirement savings.”
Josh Stott, CEO of Penny, added: “This partnership with WealthKernel is an exciting step towards serving our customers even better by giving them more control over their pensions.
“When we founded Penny, we set out to make finding, viewing and managing pensions easier and we’re thrilled that WealthKernel is powering us further along that journey with its simple, affordable technology.
“We hope this unlocks a new mindset for our customers, who will now be able to view all of their old workplace pensions in one Sipp product, empowering them to make pension investment decisions that work for them and their ideals.”
WealthKernel was co-founded by Shanmugarajah to provide investment management and technological support for companies – from banks to small financial advisers – seeking to operate an automated advice service.
amy.austin@ft.com
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