Closing pension coverage gaps: How technology is driving inclusion

As Nigeria’s pension industry seeks new growth frontiers, technology is emerging as a critical tool for deepening penetration in the largely untapped informal sector. In this report, Adaora Ude, head of Business Development at Access ARM Pensions Limited, shares insights on how digital innovation can drive pension inclusion, expand coverage, and unlock significant growth opportunities across the informal economy. Modestus Anaesoronye reports.

Technology has continued to redefine industries across the world, transforming the way businesses operate, governments provide services, and people access opportunities. In the financial services sector particularly, technology has emerged not only as a driver of efficiency, but also as a powerful tool for inclusion.

This transformation has become increasingly important in the Nigerian Pension industry as operators and regulators actively seek sustainable opportunities to close pension coverage gaps and extend retirement security to millions of underserved people. While significant progress has been made over the years, a large proportion of workers, particularly within the informal sector, remain outside the pension net. Technology presents a unique opportunity to change that reality.

In many developing economies, pension penetration remains relatively low when compared to the size of the working population. The challenge of expanding pension access extends beyond mere logistics and is driven by several interconnected barriers.

A widespread lack of awareness means that millions of workers outside the formal economy remain uninformed about pension products, their benefits, and even their eligibility to participate, leaving long-term financial security completely off their radar. Even where awareness exists, low acceptance poses a deeper cultural and behavioural hurdle. Many informal sector workers distrust formal financial institutions, prioritise immediate income needs over future planning, or simply do not see retirement savings as relevant to their current circumstances.

Compounding these challenges is the evident technology gap. Limited access to smartphones, inconsistent internet connectivity, and inadequate digital financial infrastructure makes it difficult to onboard and engage underserved populations effectively. Together, these barriers have made reaching the informal sector one of the most critical yet underserved frontiers in pension inclusion.

Historically, pension administration was largely a manual, paper-driven enterprise , one heavily dependent on physical presence and in-person interaction. Core functions such as opening Retirement Savings Accounts (RSAs), updating contributor records, processing requests, and resolving enquiries were almost entirely office-bound, requiring contributors to physically present themselves at service centres to conduct even the most routine transactions.

For the average formal sector worker, this model was inconvenient. For workers living in remote or underserved communities, it was prohibitive. Geographic distance from service centres, protracted waiting times, cumbersome documentation requirements, and a pervasive lack of awareness about the pension scheme and processes collectively erected formidable barriers to participation and slowed industry growth.

Today, technology is gradually dismantling many of the barriers that existed.

The rise of digital platforms, mobile applications, self-service portals, artificial intelligence, biometric verification systems, and data analytics has significantly improved accessibility and service delivery within the pension ecosystem. Contributors can now register, update records, monitor account balances, access statements, and initiate requests from the convenience of their mobile devices without needing to visit a branch physically.

This level of convenience is particularly important in driving inclusion among younger and digitally savvy populations who increasingly expect seamless and instant service experiences.

One of the most impactful ways technology is helping to close pension coverage gaps is through the growing penetration of mobile phones.

Across Africa, mobile phone usage has grown exponentially over the last two decades. Even in communities where traditional banking infrastructure remains limited, mobile connectivity continues to expand rapidly. This provides pension operators with an unprecedented opportunity to reach previously underserved populations.

Through mobile technology, pension awareness campaigns can reach millions of people instantly through SMS campaigns, digital advertisements, social media platforms, and mobile applications. More importantly, contributors can carry out pension-related activities directly from their phones, eliminating the need for frequent visits to pension offices.

For workers within the informal sector, whose schedules often do not permit time away from work, this accessibility can be transformational.

Technology has also played a major role in simplifying onboarding processes.

Traditionally, account opening procedures were often perceived as tedious due to documentation requirements and verification processes. Today, digital identity systems, biometric verification, and integration with national databases have significantly reduced onboarding friction.

With innovations such as facial recognition, digital Know Your Customer (KYC) processes, and online verification systems, contributors can complete registration processes faster and more securely.

Similarly, the introduction of self-service platforms by regulators and pension operators has further strengthened accessibility and convenience by allowing contributors to update personal records, upload documents, complete data recapture exercises, and monitor requests online without unnecessary delays. These advancements not only improve customer experience but also help pension operators maintain more accurate and reliable contributor data, which is critical for effective pension administration.

Beyond accessibility, technology is also playing a key role in improving trust and transparency within the pension industry.

One of the reasons many individuals, especially within the informal sector, remain hesitant about pension participation is lack of trust or understanding of how pension schemes operate. Digital platforms are helping address this challenge by providing contributors with greater visibility into their retirement savings.

Contributors can receive instant transaction notifications, access account statements in real time, monitor contribution history, and track the growth of their retirement savings digitally. This level of transparency helps build confidence in the system and encourages more people to participate.

When contributors can easily see and understand the status of their retirement savings, pension participation becomes more tangible and relatable.

Artificial intelligence and data analytics are also beginning to reshape customer engagement within the pension industry.

Pension operators can now leverage data insights to better understand contributor behaviour, identify underserved demographics, and design more targeted awareness campaigns. Rather than relying solely on generic communication, organisations can personalize engagement strategies based on customer profiles, age demographics, income categories, and communication preferences.

This becomes particularly important when addressing pension coverage among the younger demographics and informal sector participants. Social media campaigns, educational videos, interactive digital content, webinars, and online financial literacy initiatives have become important tools for increasing pension awareness among these segments of the population.

Beyond improving the contributor experience, technology has fundamentally strengthened the operational backbone of pension administration.

Automation has significantly reduced manual processing errors, compressed turnaround times, and elevated service delivery standards across the industry. Intelligent digital workflows can now execute processes that previously demanded days or even weeks of administrative effort within hours. The beneficiary of this efficiency is ultimately the contributor, who receives faster responses, fewer errors, and a smoother and more seamless service experience.

Data management and security represent another frontier where technological advancement is yielding critical dividends. Pension administration is, by nature, a data-intensive undertaking which involves the custodianship of vast volumes of sensitive contributor information over decades. Mismanagement can have severe consequences. Advances in cybersecurity architecture, encryption technologies, and digital identity verification are reinforcing data integrity, mitigating fraud exposure, and building the institutional trust that long-term pension participation demands. As digital adoption deepens, the robustness of these frameworks will remain a cornerstone of public confidence in the system.

Perhaps the most consequential impact of technology lies in its potential to address one of the pension industry’s most enduring challenges: the exclusion of informal sector workers.

Across much of Africa, a substantial portion of the working population operates entirely outside formal employment structures. Traditional pension systems, which were built around steady payrolls, employer deductions, and formal registration processes, were never designed with these workers in mind.

Riders, traders, artisans, freelancers, and small business owners have historically remained outside the retirement savings architecture, not due to a lack of aspiration for financial security, but because the system lacked the infrastructure to reach them.

Technology is rewriting that reality.

Mobile wallets, digital payment platforms, fintech partnerships, and micro-pension solutions are lowering the barriers to entry and offering flexible contribution structures that align with the irregular income patterns characteristic of the informal economy.

Participation no longer requires navigating complex processes, Pension products can increasingly be as accessed through the same digital channels that workers already use for communication, payments, and business transactions.

Despite its potential, technology is not a standalone solution.

Infrastructure deficits, inconsistent internet connectivity, digital literacy gaps, and affordability constraints remain real and present challenges across many communities. The success of technology-driven inclusion strategies will depend on continued investment in digital infrastructure, financial literacy, consumer education, and enabling policy frameworks.

There is also a responsibility for pension operators to ensure that digital transformation does not inadvertently create new forms of exclusion. While many contributors embrace digital platforms, others still require human support and guidance.

A truly customer-centric approach requires technology and accessible support systems to work hand in hand and complement innovation.

Looking ahead, the convergence of artificial intelligence, machine learning, blockchain, and predictive analytics holds significant promise for reshaping the administration, communication, and experience of pensions.

The industry is steadily evolving from a model of passive record keeping toward a dynamic, data-driven, and increasingly personalized ecosystem capable of meeting contributors where they are and serving them on their terms.

Technology alone cannot close the gaps in pension coverage. Achieving meaningful inclusion will require a coalition of commitment from regulators, policymakers, pension operators, financial institutions, and technology providers.

However, technology remains, without question, one of the most powerful enablers at the industry’s disposal.

Ultimately, the defining measure of progress will not be the sophistication of the platforms we build, but the breadth of lives meaningfully impacted. When retirement security ceases to be the privilege of the formally employed and becomes an attainable reality for every working person, the true promise of pension inclusion will have been fulfilled.

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