The plans are revealed two months after KAS Bank launched its cost transparency dashboard for defined-benefit pension schemes, intended to address the rising costs of regulatory scrutiny.
The new division will oversee the development and refinement of the cost transparency tool, as well as implementing new tools to provide data driven insight aimed at “driving real change”.
According to KAS Bank, fintech will address issues in the pension market such as mounting fund deficits and new regulatory codes and standards, by taking “innovation to the next level”.
The bank estimates that UK occupational pension schemes currently look over £2.2 trillion of pension savings for 39.2 million people across the UK.
The dashboard is also intended to support better decision-making across the entire value chain, to identify the potential for improving cost efficiency, and to allow for easier demonstration of effective governance.
KAS Bank will develop a team from inside and outside the pensions sector and will look to challenge existing practices and decision making.
Pat Sharman, managing director at KAS Bank, said: “Policymakers and regulators are becoming increasingly focused on improving governance of pension schemes, and as someone who’s worked with pensions schemes for much of my life (including my trustee roles), I understand the drive for better governance.”
Sharman added: “There is a demand for accurate, transparent and timely information, which will assist trustees with more informed decision making, and the launch of our cost transparency tool this year was the beginning of that vision.”