empf platform - mpfa.org.hk · 11/26/2019 · the information contained in this presentation deck...
TRANSCRIPT
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eMPF Platform:Vision, Challenges and Way Forward
Ms Alice LawDeputy Chairman and Managing Director
Mandatory Provident Fund Schemes Authority26 Nov 2019
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The information contained in this presentation deck is public information and the deck can be retrieved from the MPFA's website (www.mpfa.org.hk).
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How does the MPF System operate?
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An open question for those who are not in the MPF industry
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A Snapshot of MPF System
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EVERY YEAR :
Some More Statistics
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Investment Management
Scheme Administration
Three Elements of MPF Scheme
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02 03
Safekeeping of Assets
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…………………………………………………
……………………………………………………………..............
…..Fund
Management FeeInvestment
Management Fee
Administration Fee / Trustee Fee /
Custodian Fee
Sponsor Fee
37%
47%
15%
Breakdown of Fund Management Fee
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(As of 30 June 2019)
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Current State of MPF Scheme Administration
Digital Users39% Employers (on average)
Diverse distribution; less than 10% for some trustees
Manual Users61% Employers (on average)
By Post
Hundreds ofservice outlets,
e.g. bank branches
~30,000 MPF
Intermediaries
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Current State of MPF Scheme Administration (Cont’d )
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Vision of eMPF Platfrom
Transform and enhance the MPF System
Paperless MPF experience to over 4 million members and 300,000 ERs
Benefit ERs,EEs, MPF industry and MPFA
Create room for reducing MPF management fees
Pave way for future reforms – e.g. full portability
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Objectives of eMPF Platform
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Scheme administration
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Latest Progress
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Request for Proposal (RFP)
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Category A:• eMPF Solutions• Application Maintenance
Category B:• Infrastructure• Maintenance• Information Security
Category C:• MPF Scheme Operation Services• Transformation Services• User Delivery Services
• RFP exercise has been kicked off
• RFP package is divided into 3 categories:
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Request for Information (RFI)
Request for Proposal (RFP)
Category A: eMPF solutions, application maintenance
Category B: infrastructure, maintenance, information security
Category C: MPF scheme operation services, transformation services, user delivery services
Responding to either one
category will do
Must respond to all 3 categories
Detailed common standards on MPF administration processes and additional functionalities
Not available
Stakeholder engagement Not available
Latest additional functionalities Not available
RFI vs RFP
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One-stop “Customer Journey”
User-friendly
“Tech + Service” model
Vision for the Design
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New MPF ecosystem
a combination of hardware, software and services
Fintech x MPF operations
“Best of breeds”
“More than just an IT project”
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Challenges
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Current User Behavior
39% employers as digital users
(Diverse distribution: less than 10% for some trustees)
65% of transactions are still paper-based
Most scheme members don’t
actively manage their MPF accounts via electronic means
Current system delivers generally
satisfactory services
High Degree of User Diversity
Diverse cohorts in the MPF System
Diverse degrees of digital literacy and
experience
Complexity of eMPF Platform
More than just an IT project
A change management
process (to overcome a 20-year-
old inertia)
MPFA and MPF industry to promote
digital take-up
Practical Application
Digital transformation and
transition
100% accuracy
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Stakeholder Engagement
Organized a series of focus group sessions of the Platform in October and November 2019
Collected opinions and suggestions from future users of the eMPF Platform, i.e. employers, human resources practitioners etc.
Over 100 views and suggestions :• functionalities of the eMPF Platform• users’ expectations of its services etc.
Useful feedback to the development of a more user-centric and “down to earth” platform
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The MPFA is embarking on an overhaul which is like“changing the engine while running the train”
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Way Forward
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Advantages
(1) Faster (2) Simpler (3) Better (4) Cheaper
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(1) Faster
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Instant notificationto ERs, EEs after contributions are properly made
Massive time saving for the contribution process and transfer of benefits
Enhance enforcement efficiency for better members
protection
Shorten enrolment process
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(2) Simpler
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24/7 Payment Systems for making
contributions
Single log-onwith the support of various AI tools
Easy access to the
contribution reports
Consolidation of personal accounts
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(3) Better
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Reduce non-compliance e.g. 5% surcharge due to late payment of contribution
Easier management for holders of multiple accounts
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(4) Cheaper
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Reduce MPF management fees
Market openness and seamless platform to drive MPF management fees down through open competition
Paperless administration process
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Development Roadmap
2019 • RFP exercise has been kicked off
Parties interested in submitting proposals are requested to enrol in advance with the MPFA starting from 11 Nov
RFP package will be released to enrolled tenderers by email in Dec (tentative date)
Enrolled tenderers have to submit the proposal before the deadline which will be further announced
2020 • Tender award
• System design and development
2021 • Submission of legislative amendment proposal to LegCo to streamline
administration workflows and reduce regulatory burden, etc.
2022 • Target completion date of system design and development
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Thank you
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