Recordkeeping-Only Firms [6% of existing 401(k) plans]
This group represents a small and possibly decreasing fraction of the available market. These firms tend to be local and regional, and although they can maintain the "human touch," they cannot compete effectively with the bundled plans offered by mutual fund companies.
Interestingly, 401(k) Pro, Inc. envisions a tremendous marketing opportunity here: licensing fully-hosted 401(k) Enginuity that plan providers can brand with their own names and offer to their customers via the Internet. 401(k) Pro providing server hosting of 401(k) Enginuity is a low-cost, fast and easy entry into the online marketplace, and an attractive alternative to operating their own servers and licensing 401(k) Enginuity or a competitor’s administration software. |
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