Vendor Analysis
published on Feb 13, 2024
Report Overview:
This NelsonHall vendor assessment analyzes Fidelity's offerings and capabilities in next generation benefits administration, covering health & welfare and pension administration.
Who is this Report for:
NelsonHall’s Benefits Administration profile on Fidelity is a comprehensive assessment of Fidelity’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Benefits Administration Services and identifying vendor suitability for security services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the Benefits Administration Services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Fidelity’s Benefits Administration Service offerings and capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization including the location of delivery centers.
Key Findings & Highlights:
Fidelity Investments (Fidelity), founded in 1946, is a multinational financial services corporation providing financial planning and advice, retirement plans, wealth management services, trading and brokerage services, and educational resources. Headquartered in Boston, Fidelity has ~73k employees and serves its clients through 200+ Investor Centers in the U.S. and 13 global regional sites, including India and Ireland. As of September 2023, Fidelity has ~43m individual investors and holds ~$11.5tn in assets under administration and ~$4.4tn in total discretionary assets.
Fidelity offers a wide range of benefits administration products and services including Health & Welfare (H&W) services, wellness solutions, HSA & reimbursement accounts, voluntary benefits, and retirement services for defined benefits (DB) and Defined Contributions (DC). At year-end 2022, Fidelity had ~26k benefits administration clients and serves ~40m participants; NelsonHall estimates that the number of participants increased slightly in 2023.
Fidelity has ~5.5k employees delivering benefits administration services within its Workplace Investing business, which includes retirement services, including DC administration, with a focus on 401(k) and 403(b) plans, and DB pension administration, stock plan services, HSAs and reimbursement accounts, H&W administrative services, and wellness solutions.
This profile focuses on Fidelity’s overall benefits administration business for H&W and pension administration, covering DB, DC, and/or stock plan services.