Data intelligence improves customer advisory services

December 2022

In the past few years, Denmark’s largest pension company, PFA, has used data-driven algorithms and artificial intelligence to great effect when it comes to engaging customers in their pensions and strengthening the advisory services.

In recent years, PFA has supported customer advisory services, case processing and capacity management via an increased use of data-driven algorithms and artificial intelligence. In particular, there has been a targeted effort on developing digital self-service solutions that make it easy for customers to get an overview of their pensions and adapt their plan to their individual lives, desires and needs. This has resulted in a significant boost to customer engagement.

“We can see that our digital solutions are being well received by customers, and in the last year, we have had more than 3 million logins to our digital customer platform called My PFA, where customers have logged in to adjust their pensions to their life circumstances and needs. This is very encouraging considering that for a long time, pensions have been considered as a low-interest area,” says Mads Kaagaard, Executive Vice President at PFA and responsible for Products & Development.

Mads Kaagaard specifies that PFA’s innovative work with data intelligence has, among other things, formed the basis for an action centre on the digital customer platform My PFA (mitpfa.dk). Here, customers are met by green, yellow and red cards that indicate whether their plan matches PFA’s recommendations or whether action needs to be taken. The recommended actions are also shown in order of priority so that it is quick and easy to get started. 

It is all supported by a digital onboarding process with messages that engage customers and ensure that they submit the information that is needed in order for PFA to give them good recommendations.

While pension customers have received recommendations from their companies for a long time, according to Mads Kaagaard, the unique thing about PFA’s solutions is that they are dynamic and individualized rather than generic.

“With the digital action centre and recommendations, we combine PFA’s professional knowledge and experience with the information we have about the customers’ life situations such as, for example, their financial, housing and family circumstances. If these change, the recommendations will also change - and so will what is shown and prioritized in the action centre. This empowers our customers to take action and, if necessary, adjust their pension to their individual needs. And if there are questions along the way, we are of course ready to answer their call or write a reply,” says Mads Kaagaard.

Mads Kaagaard mentions that PFA’s progress in the digital space has also resulted in changes to PFA’s advisory organization so that it is better equipped to handle the new customer reality where self-service and personal advice are no longer seen as two separate things, but a natural extension of each other in a dynamic flow.

“With the increased knowledge we have about customers, for PFA it is no longer about offering as many advisory services as possible, but rather about reaching out to those who have a need and where the advisory services can change the pension plan from being flagged red to being flagged green. We have made organisational changes to reflect this, so that we effectively use our data and knowledge as an engine for the proactive advisory services and then stand by to take over with personal advisory services when needed."

Besides the advisory services concerning pension matters, PFA also uses data-driven algorithms in its work with insurance and health. Here, for example, the approach has helped to identify customers where a proactive contact and assistance can help reduce the risk of long-term absence due to sickness.

Similarly, PFA has used data intelligence and machine learning for capacity management where some precise predictions have been made about how many claims and what type of claims customers may submit.

This has already saved PFA millions with respect to the purchasing agreements entered into with private hospitals.

• With approximately 1.35 million private customers, more than 6,000 corporate and organizational customers and a market share of 19.1% of gross payments, PFA is Denmark’s largest commercial pension company.¹
• With close to DKK 650 billion under management², PFA is also the largest customer-owned pension company in Denmark. The size allows PFA to manage assets of customers in the best possible way. As a customer, the investments are handled by an internal investment team, planning the right strategy, conclude the best deals and keep the expenses at a minimum.
• PFA is an independent company with a business model which makes it possible for PFA to create more value to the customers. PFA was founded by the labor market parties in 1917 in order to create mobility in the Danish labour market and to ensure the people in Denmark the freedom to live the life that they want. Due to the fact that PFA was not established for the benefit of its owner’s wealth, the greater part of the value created will be returned to the customers. This is the very core of PFA’s business model.
• PFA Plus offers a complete pension solution with both savings and insurance cover in one package. A flexible investment concept, PFA Plus ensures that your employees can save their money at market interest rates, and that risk is gradually reduced as retirement age approaches.
• PFA’s obligations for the customers reach beyond the financial aspect. Over the years, PFA has acquired solid experience and proficient competencies in the health area, and PFA make these available to the customers. PFA focuses on preventive measures and early intervention in the workplace.