Pension technology provider Zippen gets bought by Wagestream
In a significant move that underscores the evolving landscape of employee-employer relationships, Wagestream, a leading player in workplace finance and wellbeing, has acquired Zippen, a pensions technology company. This acquisition marks a broader trend where financial services are increasingly being offered within the workplace, traditionally a domain of banks [1][2].
## Impact on Employee-Employer Relationship
The integration of financial services into the workplace signifies a major evolution, with employers stepping up to offer comprehensive financial support. Beyond basic debt helplines, employers are now providing salary-linked services, high-interest savings options, affordable loans, and flexible pay schedules. This holistic approach is seen as a strategic tool for improving employee engagement, loyalty, and productivity [1].
Employers are recognizing that offering financial wellbeing services is not merely a perk but a crucial strategy for enhancing employee satisfaction and performance [1][2]. Specifically, the inclusion of pension technology through Zippen allows Wagestream to address issues like unclaimed pension assets, which are particularly prevalent among low- and middle-income workers. This expansion enhances employees' access to tools for long-term financial planning and retirement security [1].
## Strategic Implications of the Acquisition
The acquisition strengthens Wagestream's expertise in pensions and defined contribution pensions, critical for navigating the UK pensions market [1]. With Zippen's co-founders, Stuart Feast and Ellie Tembras, joining the Wagestream Group, the company can leverage Zippen's specialist knowledge to further its mission of enhancing financial wellbeing for all workers [2].
This strategic move likely signals future innovations in workplace financial services, potentially leading to more integrated and comprehensive financial support systems for employees. The addition of Zippen to the Wagestream Group strengthens their expertise and furtheres their mission to help people take control of their financial lives [1].
Peter Briffett, CEO & co-founder of Wagestream, stated that the acquisition is part of an evolution in the way financial support is provided to workers, emphasizing the importance of holistic financial wellbeing [1]. The acquisition signifies a continued shift in the employee-employer relationship, with financial services moving from traditional banks into the workplace.
According to Wagestream's research, low- and middle-income workers hold twice as many unclaimed pension pots compared to the average UK worker, amounting to an estimated £31.1 billion in pension assets remaining unclaimed in the UK [1]. The acquisition of Zippen aims to address this issue and provide a more comprehensive financial support system for employees.
With this acquisition, Wagestream, a market leader in workplace finance and wellbeing, now reaches millions of workers globally, poised to revolutionize the employee-employer relationship and financial services in the workplace.
[1] - https://www.wagestream.com/blog/wagestream-acquires-zippen [2] - https://techcrunch.com/2021/03/11/wagestream-acquires-zippen-to-expand-its-employee-finance-offerings/
- In light of the acquisition, employers may now leverage advanced business strategies that combine finance and technology to deliver robust financial wellbeing solutions, fostering improved employee engagement, loyalty, and productivity.
- With their expanded expertise in pensions technology, Wagestream is now in a strong position to tackle issues like unclaimed pension assets and provide long-term financial planning tools for employees, thereby enhancing their retirement security.
