New technology, high internet usage, bank ID, and changing consumer behavior are some of the reasons why new players can attract customers quickly
Polls conducted by Gartner showed that consumers today wait until they reach 57% during the purchase process before interacting with the company, by looking for information about the company and the product themselves. This means that new products that are transparent in good conditions can quickly get many customers. Of course, this is a nightmare for large companies with outdated business models, poor conditions in their products, and those who believe they can live by their brand, says Matthias Filinius, founder and chairman of Svenska Fribrevsbolaget.
A new law will increase consumer power
Few know the word free letter, but most people of working age have at least one. A pension insurance where payment ceases and is created when, for example, a change of employer is called a free letter.
A salaried employee will receive an average of eight leave certificates distributed to different pension companies during his lifetime. On April 1, 2021, a new law was introduced in Sweden, which makes the transmission of their free messages less expensive, something that Svenska Fribrivespolaget specializes in helping its customers.
A common goal with clients
Finansinspektionen’s criticism that commissions can influence financial product advice and thus the return a customer gets is justified according to Mattias Fellenius.
– At Svenska Fribrevsbolaget, all fund commissions are returned to the client, which means that the client receives low financing fees and the same goal is that of us and the client, which is that the client should choose the funds that provide the highest possible pension. Sharing the goals with the client in all likelihood will give the customer a better return, and we are already seeing this in the result from 2020 as Our model maintained superior performance Compared to their competitors’ peers, i.e. their own money, says Matthias Fellinius.
Savings for pensions are made over a long period of time, so the right choice of funds can have a big impact on your ultimate pension. Choose cheap index funds in the big markets, for example the USA, but in Sweden small companies miss you if you buy an index fund, then choose instead a Swedish fund actively managed by a well-recognized manager, explains Michael Asker, director of funds and investment at Svenska Fribrevsbolaget.
Legislation regarding commissions was introduced early in 2018
A new law, the Insurance Distribution Directive (IDD), was introduced early in 2018, with the aim of increasing and improving customer protection regardless of distribution channel and creating healthy competition. Finansinspektionen announced that pursuing law enforcement is one of their focus for 2021.
Despite the fact that the 2018 law is quite clear, Svenska Fribrevsbolaget is the only insurance company in Sweden that does not keep any financial commissions whatsoever. Matthias Fellinius explains that you can get a commission-free form of your uninsured savings through a number of players, but we think you clearly should also be able to get it for your retirement pension money.
Below you can get a free compilation of your free letters where you will also learn about your chances of transferring capital and thus get better terms.
to: Svenska Fribrivespolaget