At a recent industry meeting to discuss how registrars could share data, I was struck by a few things, not to mention the fact that the industry has been trying to figure out how to fix this problem for 2008 with little or no progress.

But what really struck me was that product innovation in workplace pensions is controlled by risk managers, lawyers, lobbyists and legislators. Plan sponsors have little incentive to be truly creative with onerous and complicated laws and regulations and 200 lawsuits filed in the past two years.

No one cares about plan members who are looking for creative and innovative solutions that help them save and spend more wisely. The workplace is the obvious place for additional help as there is more access and trust to work than the B2C market, which is why Empower Retirement purchased Personal Capital.

And while there’s more fiduciary protection for investors at work, it also comes with greater accountability. Although the onslaught of lawsuits has earned Schlichter Bogard around $400 million, it hasn’t hurt the defense bar either, which isn’t shy about using fear and paranoia to justify its fees and costs. increasing control. And that has resulted in lower fees and more attentive trustees.

Lobbyists thrive on chaos and uncertainty, and sometimes when there is none, they create them to stay relevant. Established suppliers with massive distribution networks have an incentive not to change the rules of the game they are winning. Would you?

So what is the solution ?

I’m always hopeful that pension plan advisors will be the advocates for change and innovation, but most are responsive and careful not to scare off the plan sponsors who hire and fire them, even if it’s is to the detriment of the workers.

The answer is the fintech industry, which is already happening, although still very slowly.

Vestwell creates a microcosm that provides access to all participant data. FeeX (now Pontera) allows advisers to actively manage clients’ defined contribution accounts without their accountant’s permission, although a bigger one with ambitions of his own would have blocked those efforts. Perhaps they know best what is good for the participants. Morningstar is tackling investment customization through managed accounts and Annexus, which has focused on life and annuities, is trying to develop new solutions for in-plan retirement income.

But that’s just the tip of the iceberg.

There are 10 to 20 times more technology solutions available to wealth advisors than RPAs, in part because most recordkeeping technology is so archaic and unable to significantly upgrade without stop for a while.

Fielding Miller once commented during an industry roundtable: “When ‘fine’ and ‘technical’ regulations collide. It’s much worse with DC plans where the DOL, SEC, and IRS, not to mention Congress, the President of the United States, and state legislators and regulators all have some jurisdiction.

Offerings such as the recent Vanguard/American Express partnership offering financial advice to cardholders will only increase. More and more financial services are being integrated into popular apps, which will be another backdoor in the workplace.

It took outsiders like Elon Musk to change the auto industry and Jeff Bezos to disrupt retail stores.

So while there are many opportunities to solve financial problems in the workplace, the real innovation and creativity will not be driven by lawyers, risk managers, lobbyists and archivists, where maintaining of the status quo and conflicts of personal interest still reign supreme. And that probably won’t happen inside the Beltway.

We should encourage and welcome technological disruptors if we cannot do it ourselves.

Fred Barstein is founder and CEO of TRAU, TPSU and 401kTV.