Vice-president of Cuprum details challenges for AFPs amid crisis

SANTIAGO.- The vice president of AFP Cuprum, Pablo Wagner, has said that he sees the current economic crisis as an opportunity to transform certain industries, including private retirement fund administrators (AFPs).

The expert suggested that the AFP industry should work to develop a more significant and compassionate relationship with its clients.  To accomplish this, Wagner (who is also the planning manager of Banmédica) says the challenge is to change retirement fund administrators from being an “obligatory product” to being a product that also involves “dedication”.

According to Wagner, such a change can be achieved by way of three strategies.  The first is to strengthen the market, especially for voluntary retirement savings.  The second would be to increase retirement fund education and the third is to certify sales personnel so that clients can depend on advisors that are specialized, trained and have a long-term commitment to the industry.

Wagner says that some of the vital concepts that the industry should keep in mind in the face of the crisis are:  the capability to generate sustainable and innovative competitive advantages while valuing and stimulating customer loyalty.