BEST-IN-CLASS FOR THE ONLINE

DC PLAN PARTICIPANT EXPERIENCEA COMPETITIVE ANALYSIS

NOVEMBER 2013

Copyright 2013 Corporate Insight, inc.

ABOUT CORPORATE INSIGHT

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Corporate Insight provides competitive intelligence and user experience research to the nation’s leading financial

institutions. For over 20 years, the firm has tracked technological developments in the financial services industry,

identifying best practices in online banking and investing, online insurance, mobile finance, active trading

platforms, social media and other emerging areas. There are no assumptions in Corporate Insight’s work – we use

live accounts at all of the firms we research, providing our clients with unparalleled, unbiased intelligence on the

competition.

Corporate Insight welcomes the opportunity to speak with the media. If you are interested in citing our research or

would like to schedule an interview with one of our analysts, please contact Intermarket Communications at 212-

888-6115 or corporateinsight@intermarket.com.

Media Inquiries

Connect With Us

JAMES MCGOVERN

Vice President

Consulting Services

646-454-2667

jmcgovern@corporateinsight.com

TABLE OF CONTENTS

• Introduction

• Building a Best-In-Class Online Experience

o Know your users

Findings from our 2013 DC Plan Participant Survey

o Understand your competitors

Findings from our 2013 DC Plan Participant Website Audit

• What is Next?

• Corporate Insight Thought Leadership

• Contact The Author

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INTRODUCTION

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CORPORATE INSIGHT’S RETIREMENT RESEARCH

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• Began research on DC participant Web experience in 2006

o Custom DC Plan Participant Website Audit 2006 and 2010

o Plan Sponsor Website Audit 2007 and 2010

• Launched Retirement Plan Monitor research service in 2012

ABOUT THE DC PLAN PARTICIPANT WEBSITE AUDIT

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For over 20 years, Corporate Insight has closely monitored and analyzed the online

customer experience offered by financial services firms. The DC Plan Participant

Audit helps our clients understand the strengths and weaknesses of their DC plan

participant website versus key competitors. The Audit also offers actionable

recommendations to close competitive gaps and improve the client firm’s plan

participant site.

AUDIT METHODOLOGY

The DC Plan Participant Website Audit framework consists of five categories,

23 sub-categories and over 125 attributes covering all facets of the online

plan participant experience. The five categories assessed are:

• Account Information

• Account Servicing

• Planning, Advice & Education

• Quotes & Research

• Transactions

AUDIT INCORPORATES FEEDBACK FROM DC PLAN SITE USERS

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• CI surveyed 1,000 DC plan site users to understand what they want from their plan site

• Survey data powers weighted scores used to determine the importance of Audit categories, sub-categories and attributes

• Weights can be tailored based on preferred demographic

• Survey data used to create DC Plan Participant Survey Report

DC PLAN PARTICIPANT WEBSITE AUDIT – WHAT YOU RECEIVE

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AUDIT REPORT – Customized report that identifies your plan participant website’s strengths and weaknesses against key competitors. The report includes weighted scores for your site and all competitor sites that reflect importance ratings from our DC Plan Participant Survey. We also provide dozens of gap analysis charts and hundreds of specific, tailored recommendations to help you improve your plan participant website.

DC PLAN PARTICIPANT SURVEY REPORT – As part of the Audit, we surveyed nearly 1,000 participant website users in June 2013 to understand how they utilize their provider’s website and mobile platforms and what features they value most. This report summarizes the results of this research and how attitudes and behavior differ by such demographic factors as age, gender and plan assets.

DC PLAN PARTICIPANT SURVEY DATA – Audit purchasers also receive the raw plan participant survey data we compiled focusing on website and mobile usage, customer satisfaction and more.

To learn more about our DC Plan Participant Website Audit, please contact James McGovern, Vice President, Consulting Services, at 646-454-8667 or jmcgovern@corporateinsight.com.

BUILDING A BEST-IN-CLASS

ONLINE EXPERIENCE

• Know Your Users

• Understand Your Competitors

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Know Your UsersFindings From Our 2013 DC Plan Participant Survey

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THE WEBSITE MATTERS TO USERS…

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88%

9%

2% 1%Logging onto the plan provider’s website and reviewing real-time data

Opening your mailed statement andreviewing periodic data

Logging onto the plan provider’s mobile app and reviewing real-time data

Calling customer service to speak with arepresentative

When you think of where to go to monitor your retirement plan balance and activity, you think of?

AND IT MATTERS TO YOUR BUSINESS TOO!

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• Compared to our total survey sample, participants who are extremely satisfied with their provider’s website are 18% more likely to roll over their plan assets to an IRA with that firm

Likelihood to Roll Over by Satisfaction Level with Provider Website

TOP WEBSITE ATTRIBUTES

ACCOUNT INFORMATION DOMINATES

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Eight of the Top Fifteen Most Important Website Attributes

Relate to Account Information

See your account balance

Access latest quarterly statement

View account positions

Transaction confirmations

Access quarterly statements for last year

Access account history for past 180 days

Account history available since enrollment

Positions are updated daily

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4

5

8

9

12

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15

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MEN AND WOMEN USE SITE SOMEWHAT DIFFERENTLY

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41%

32%

23%

17%

0% 10% 20% 30% 40% 50%

Exchange between investment funds

Performed research on available funds

Female Male

Main Difference in Website Utilization Per Gender

• Men are more likely to research investments and exchange plan dollars between funds

OLDER USERS TEND TO LOG IN MORE OFTEN

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Frequency of Logging Into a Plan Website by Age Group

Age

60+

40 - 59

<40 00

1+/Month

69%

64%

59%

OLDER USERS TRACK THEIR ACCOUNTS MORE CLOSELY

58%

65%

81%

65%

74%

88%

0% 20% 40% 60% 80% 100%

Viewed / downloaded statement

Reviewed account / fund performance

Checked plan balance

60+ < 40Age Group

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Percentage of Respondents Who Performed Activity on Participant Site in Past 12 Months

OLDER USERS ARE MORE LIKELY TO BE MOVING MONEY AROUND

3%

31%

22%

20%

33%

36%

0% 10% 20% 30% 40%

Withdraw Money from Plan

Change Allocation

Exchange between Funds

60+ < 40Age Group

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Percentage of Respondents Who Performed Activity on Participant Site in Past 12 Months

YOUNGER USERS ARE MORE LIKELY TO USE PLANNING, EDUCATION

& MOBILE

8%

15%

27%

3%

10%

23%

0% 10% 20% 30%

Use Mobile App to Access Account

Refer to Educational Content

Use Site Tools & Calculators

60+ < 40Age Group

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Percentage of Respondents Who Performed Activity on Participant Site in Past 12 Months

AREAS OF INTEREST FOR THOSE UNDER 40 YEARS OLD

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PlanningTools

1. Estimate of retirement funds needed

2. Recommend asset allocation changes

3. Financial tools covering basic decisions

4. Plan for multiple goals in retirement

5. Actionable guidance on savings rate

EducationalContent

1. Retirement savings as well as investing strategies

2. Understand non-retirement resources from the provider

3. Basic tools / materials available pre-login

Understand Your CompetitorsFindings From Our 2013 DC Plan Participant Website Audit

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WHAT IS THE WEBSITE AUDIT?

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It is NOT like the

government version

IT IS a benchmarking analysis

against your key competitors

• Identify strengths and weaknesses

• Weighted rankings of attributes

• Identifies high value enhancements

• Helps prioritize platform development

A MORE DETAILED VIEW OF OUR AUDIT FRAMEWORK

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COMPETITOR SET OF THE CURRENT WEBSITE AUDIT

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Graded Ten Leading DC Plan Participant Sites Using Live Accounts

KEY AREAS OF INTEREST TO PARTICIPANTS

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Plan Overview

1. View account balance

2. Rate of return

3. Performance chart for account

4. Current contribution & match

5. Retirement income forecast

6. Allocation pie chart

Statements

1. Most recent quarterly statement

2. Quarterly Statements for past year

3. Statements since enrollment into plan

Account History

1. Transaction confirms

2. Minimum of transaction history for last 180 days

3. All history since enrollment into plan

CORE ACCOUNT INFO SCORES FALL WELL SHORT OF EXCELLENT

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Account History

Account Statements

Plan Overview

History, Statements & Plan Overview

1 = Poor2 = Fair3 = Good4 = Excellent

Great West (3.55)

Vanguard (3.42)

Merrill Lynch (3.22)

Total Score

Vanguard (3.57)

Great West (3.55)

Fidelity (3.23)

Great West (3.75)

JP Morgan (3.66)

Mercer (3.22)

Merrill Lynch (3.54)

Vanguard (3.54)

AON Hewitt (3.47)

ACCOUNT HISTORY KEY FINDINGS

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Account History • Half offer less than two years of searchable account history

• History search, sort and filter functionality limited

• Data display tends to be simplisticIndustry Average = 3.05 / 4.0

Vanguard (3.57)

Great West (3.55)

Fidelity (3.23)

1 = Poor2 = Fair3 = Good4 = Excellent

Source: 2013 Corporate Insight Plan Participant Website Audit

VANGUARD IS ABOVE AVERAGE IN

NEARLY ALL ACCOUNT HISTORY ATTRIBUTES

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Account History Gap Analysis – Vanguard vs. Competitors

No print link

Data Display

Transaction Descr.

Data Download/Export

Printability

Navigation / Integration

Depth of Archive

Transaction Types Avail.

Search, Filter, Sort

Competitors are Better Vanguard is Better

GREAT WEST ALSO CONSISTENTLY OUTPERFORMS

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Account History Gap Analysis – Great West vs. Competitors

Three year archive

Data Display

Transaction Descr.

Data Download/Export

Printability

Navigation / Integration

Depth of Archive

Transaction Types Avail.

Search, Filter, Sort

Competitors are Better Great West is Better

ACCOUNT HISTORY BEST PRACTICES – GREAT WEST

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A Summary overview offers combined figures for each

transaction type within a given time period

ACCOUNT HISTORY BEST PRACTICES – GREAT WEST

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Clicking on a particular transaction reveals

additional level of detail

ACCOUNT HISTORY BEST PRACTICES – VANGUARD

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Users can access seven years of

transaction history

ACCOUNT HISTORY BEST PRACTICES – VANGUARD

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Users can view transactions by fund, source or

both…

…and sort transactions by

date, description or fund name

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Easy access to related features

Fly-out menu gives users one-click access

to other key site functions

ACCOUNT HISTORY BEST PRACTICES – VANGUARD

TO DELIVER A BEST-IN-CLASS ACCOUNT HISTORY…

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1. Offer a deep archive, preferably for full life of the account

2. Allow users to filter history by fund, source and custom time period

3. Provide dynamic data sorting

4. Let users click on a transaction to reveal additional details

ACCOUNT STATEMENTS KEY FINDINGS

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• Most firms only offer two-year archive

o Sixty-seven percent of respondents said that access to ALL statements online was “very” or “extremely important”

o Young participants prefer digital over paper

• A few sites lack statements in PDF

Account Statements

Industry Average = 3.1 / 4.0

Great West (3.75)

JP Morgan (3.66)

Mercer (3.22)

1 = Poor2 = Fair3 = Good4 = Excellent

Source: 2013 Corporate Insight Plan Participant Website Audit

ACCOUNT STATEMENTS BEST PRACTICES – GREAT WEST

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Users have access to five-year statement archive, plus online

access to mailing inserts

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“On Demand” statements can be

generated and accessed in PDF format for easy

downloading

ACCOUNT STATEMENTS BEST PRACTICES – GREAT WEST

ACCOUNT STATEMENTS BEST PRACTICES – JP MORGAN

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ACCOUNT STATEMENTS BEST PRACTICES – JP MORGAN

TO DELIVER A BEST-IN-CLASS ACCOUNT STATEMENTS FEATURE…

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1. Offer a deep archive, preferably for full life of the account

2. Organize statements by year

3. Allow users to create custom statement for desired period

4. Present statements in PDF

5. Provide easy access to statement inserts

PLAN OVERVIEW KEY FINDINGS

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• Audit’s most important sub-category

• Homepage & related features/info

o Plan balance/fund balance

o Asset allocation

o Performance

o Current contribution

o Retirement Income projection

Plan Overview

Industry Average = 3.22 / 4.0

Merrill Lynch (3.54)

Vanguard (3.54)

Aon Hewitt (3.47)

1 = Poor2 = Fair3 = Good4 = Excellent

Source: 2013 Corporate Insight Plan Participant Website Audit

PLAN OVERVIEW BEST PRACTICES – MERRILL LYNCH

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Account Summary page offers useful account overview data with click-to-reveal access to more in-depth info

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Balances are available by investment,

source or asset class, with the

option to display a combined view

PLAN OVERVIEW BEST PRACTICES – MERRILL LYNCH

PLAN OVERVIEW BEST PRACTICES – VANGUARD

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Intra-page tabs provide quick access to

overview information and key site features

Combined balance information offered for multiple plans and aggregated external accounts

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Access to personalized rate of return for plan as well as individual

funds

Month-by-month detailed

performance data

PLAN OVERVIEW BEST PRACTICES – VANGUARD

PLAN OVERVIEW BEST PRACTICES – AON HEWITT

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Interactive graph allows users to compare up to three individual funds against

personalized rate of return

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Compare current asset mix to model mix and view the

impact on projected balance

Links are offered to apply new investment mix

PLAN OVERVIEW BEST PRACTICES – AON HEWITT

TO DELIVER A BEST-IN-CLASS PLAN OVERVIEW FEATURE…

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• Put key metrics up front, like plan value and YTD performance

• Allow users to drill down into the details

• Use graphics to communicate performance

• Offer links to key features like recent statements

WHAT IS NEXT?

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WHAT IS NEXT?

Advice & Guidance Next-Gen Advice Mobile

ADVICE AND GUIDANCE

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2013 Financial Advice Survey

• Americans need financial guidance, but many participants opt to retrieve it from places other than their DC plan sites, especially those that are between the ages of 18 and 34 and 55 and 64, respectively.

MANY FIRMS LACK EDUCATION AND PLANNING RESOURCES

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Planning, Advice & Education Industry Average = 2.5 / 4.0

0 1 2 3 4

Vanguard

T. Rowe Price

Fidelity

Planning, Advice & Education Category Scores

0 1 2 3 4

T. Rowe Price

Great West

Fidelity

Multi-Goal Planning Tools Sub-Category Scores

Multi-Goal Planning ToolsIndustry Average = 2.13 / 4.0

Source: 2013 Corporate Insight Plan Participant Website Audit

1 = Poor 2 = Fair3 = Good 4 = Excellent

FIDELITY’S PORTFOLIO REVIEW IS THE BEST IN CLASS

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The tool incorporates Fidelity accounts as well as accounts

held outside the firm

Portfolio Review tool creates investment strategies to help

users meet specific goals

PLANNING, ADVICE AND EDUCATION BEST PRACTICES – FIDELITY

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Users can select all available funds or Fidelity

funds only

Portfolio Review offers actual fund recommendations to help achieve desired goal

TO DELIVER BEST-IN-CLASS PLANNING AND EDUCATION

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• Offer a good mix of plan-specific calculators and in-depth planning tools

• Organize your resources effectively

• Don’t just address retirement – healthcare expenses too!

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NEXT-GEN INVESTING ADVICE

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STEVE JOBS LIVES ON

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MOBILE IS REACHING A TIPPING POINT

GOOD NEWS: PROVIDERS OFFER MOBILE

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47%

59%

12%

41%

0%

Mobile Optimized Site iPhone App iPad App Android Phone App Android Tablet App

Mobile Platform Support Among Retirement Plan Monitor Firms As of October 2013

BAD NEWS: PARTICIPANTS ARE UNAWARE

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Yes, 23%

No, 13%

I don't know, 64%

Yes, 35%

No, 65%

Does your provider allow access to your account via a mobile device?

If yes, have you accessed your plan via this device in the past 12 months?

AND MOBILE ACTIVITIES REFLECT LIMITS OF TODAY’S OFFERINGS

1%

2%

2%

2%

2%

9%

10%

0% 20% 40% 60% 80%

Sent or received a text message to/fromcustomer service

Enrolled in my plan

Viewed educational content like a planningtool or video about saving for retirement

Completed an investment risk toleranceprofile

Scheduled a guidance consultation

Made a transaction (e.g., rebalanced myaccount, changed my contribution rate, etc.)

Conducted research on a plan investment

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Retirement Plan Activities Using Mobile

MOBILE CLOSING THOUGHTS

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• Mobile must be part of your strategy

• Participant knowledge is very poor – you must change this

• You can improve overall participant engagement using mobile,

especially with young people

• Do not neglect the tablet

FINAL THOUGHTS

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• Industry gets the basics of account information right…

• But it could do much more to drive engagement…

• Particularly with younger participants…

• Better planning and education is one part of the solution…

• Longer term, mobile will be as well

CORPORATE INSIGHT THOUGHT LEADERSHIP

Next-Generation Investing: Financial Startups and the Future of Financial Advice CI tracks over 100 startups that covers a wide range of new ideas across financial advice and investing. This

study will focus on each idea, analyze compares them to what established financial institutions offer and

examine the potential impact on the industry. Download the study preview!

Social Media Trends: Annuity and Life InsuranceThis presentation analyzes the current social media initiatives and promotions undertaken by leading insurers,

highlights key social media findings and trends across the insurance industry, and offer tips for insurers looking

to bolster their social presence.

Tablet-Friendly Web Design: Best Practices for Financial ServicesThe study examines the tablet-friendly website features provided by four leading firms across financial services

and provides recommendations for financial services firms building tablet-optimized websites.

Facebook Marketing Campaigns - Social Media Initiatives in the Insurance IndustryThis slide deck highlights some of the engaging Facebook marketing campaigns initiated by P&C Insurance

Monitor firms this year and offers a few Facebook marketing tips for insurers.

2013 Mobile Finance Trends and InnovationsThis slide deck includes commentary on mobile developments, key takeaways for financial services firms and

thoughts on what’s next for mobile finance.

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CONTACT THE AUTHOR

James McGovern

Vice PresidentConsulting Services

James McGovern is head of CI’s Consulting Services. He leads a team of analysts that provides highly customized research and competitive intelligence to the nation’s leading financial institutions.

Recent consulting engagements have included website and mobile capabilities benchmarking projects, Website Audits, industry trend analysis, business strategy projects, mystery shop work, pricing analysis, and user testing and heuristic reviews, among others.

Check out our consulting case studies to learn more about our latest projects and strategic engagements.

CONTACT JAMES:646-454-2667 jmcgovern@CorporateInsight.com | LinkedIn

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