Technology as a medium for good pension delivery-Odunze Reginald

The need for a robust information technology cannot be over emphasized and as the Head Surveillance, M Y. Datti of National Pension Commission in the 2011 circular  in raising the minimum share of Pension Fund Administrators to 1 billion Naira stated that as part of its oversight function observed that “the minimum share capital of 150 million naira was no longer adequate to meet the operation expenses of PFA business, given its intensive IT nature and average gestation period of 5 years.

From the presentation of Datti, it is very glaring that IT plays a prominent role in pension management, having an adequate technology infrastructure will go a long way in ensuring customer satisfaction.

There is urgent need to ensure a proper safeguard customer data against intruders, like hackers, identity theft, password sniffers, web crammers, spoofing, data kidnappers, software piracy, cyber squatting and unlawful interceptions.

The need for these safeguards are coming as a result of recent development in the world, I cloud issues, and as Scott Cornell in his article “ Effect of computer hacking on an organization  will say “ It's common for businesses to install security systems to keep their properties safe and to purchase insurance in the event of a disaster or robbery. Arguably, though, a security system feature that is of equal importance is one that business owners can implement to protect company computers from hackers and viruses. Hacking on the whole costs businesses billions of dollars each year. But there's more than just money at stake if your business were ever to encounter a computer hacker”

But technology is an expensive project and requires large chunk of money for it implementation and will definitely a larger chunk of money for its safe guarding and protection, more recently we have read cases of nude pictures of celebrity being leaked on line as a result of hacking of I cloud, if people can hack naked pictures of women, then it is left for anyone’s imagination to ascertain what other areas it can hack.

Technology is a paramount necessity in all spheres of business life and pension cannot be an exception, issues to pertaining to customer service delivery are also a great concern as far as technology is concerned.  All Pension Fund Administrators are geared towards market deepening, and market deepening comes with it  a large customer base waiting to be serviced on a regular bases .But be as it may ,the servicing of these customers requires a robust IT infrastructure.

Market deepening comes with increase in pension assets and large investible funds for growth of the economy and also these are being driven for a good IT infrastructure.

The world has become a global village and we are in the period of hyper globalization, technology therefore becomes an essential ingredient in driving the scheme to a profitable base even as the pensions hit 4.5 Trillion Naira.

Odunze  Reginald  is the Lead Consultant, Chareg Consulting.