Ecosystem of non-State pension funds: A fashion trend or a strategic need?

Abstract

Subject. The modern trend of economic development requires that non-State pension funds accelerate the transition from the classic business model to the formation of a financial ecosystem. The article examines the ecosystem of a non-State pension fund (hereinafter referred to as NPF), as a tool to ensure competitiveness. Objectives. The aim is to consider trends in the pension industry, describe its current state, assess the impact of ecosystem giants on the pension industry, justify that the ecosystem nature of NPFs is the optimal tool for maintaining their competitiveness. Methods. I employed comparative and analytical methods to consider the efficiency of using ecosystem services, given the high degree of variability of external environment. Results. I analyzed trends in the pension industry, identified prerequisites for system changes and ways of developing and maintaining the competitiveness of the NPF market. The paper formulates the definition of the NPF ecosystem and simulates a set of services for it. The set of services of the NPF ecosystem, under the "niche" approach, will enable non-State pension funds not only to retain their role in the social protection of citizens and avoid high-risk investments, but also to improve the level of competitiveness. Conclusions. I conclude that ecosystems will act as a driver of growth and competitiveness of NPFs. If the NPF is not an affiliated structure of a large financial group, the best option is to create an internally sourced ecosystem, using a ‘niche’ approach, through the implementation of the ‘Turnkey Pension’ strategy.