Fidelity Investments said that it added $146 billion in assets to its workplace benefits platform in 2021.
The growth reflects the addition of more than 2,100 products across 1,900 clients, Fidelity said. The products include 401(k), 403(b), company stock and defined benefit plans; health savings accounts; student debt repayment and workplace giving programs, according to Fidelity.
New clients include online food ordering company DoorDash, academic medical center Penn Medicine and manufacturing company Arconic, Fidelity said.
Fidelity attributes the growth to its ability to integrate workplace benefits on a single platform; increased demand from employers for extensive service and support; its ability to provide a range of products and solutions for employees at each stage of life and its use of technology such as cybersecurity, cloud computing, artificial intelligence and predictive analytics to deliver an experience that is fast, easy to access and secure.
“In today’s challenging economic environment, organizations are looking for an experienced, trusted benefits provider that has the strength, scale and expertise to design and deploy a benefits platform that delivers value to their workforce, as well as can help them attract and retain talent,” Kevin Barry, president of Workplace Investing at Fidelity Investments, said in a statement.
“As the benefits landscape continues to evolve, we will continue to innovate, adapt and invest in our offerings to meet the ever-changing needs of our clients,” he added.
Fidelity saw its defined contribution business — including 401(k) and 403(b) plans — add $90 billion in sales to its platform, it said. Fidelity attributes this growth to its relationships with advisors and consultants who assist employers in making decisions about defined contribution plans.
Fidelity’s Stock Plan Services business added $36.7 billion in assets across more than 100 new clients, while its defined benefit business added $20 billion in assets across more than 80 new clients, Fidelity said. Additionally, more than 400 clients added a health savings, student debt repayment or workplace giving plan, Fidelity said.
“As more organizations recognize that the overall well-being of their employees goes beyond just retirement savings, we’re seeing a growing number of employers adding workplace benefits that can address the health, work and physical wellness of their workforce,” Barry said in a statement, adding that Fidelity has made investments to support its increasing number of workplace benefits clients such as hiring more than 1,000 new associates in 2021.
Fidelity helps 22,000 businesses manage their employee benefit programs, it said.
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