Autif's fund trading platform EMX is exploring ways to diversify, with plans under discussion to use its software to connect product providers to employers.
It says the move will allow providers to make substantial cost savings by relaying messages electronically, allowing them to conduct business within the stringent charging structure of stakeholder.
EMX, the purchase, sales and valuation system for investment funds, says, with tight stakeholder margins, there needs to be an electronic messaging service which will let providers process information in a cost-effective way.
The system, developed for the UK fund management industry, could be used by product providers to get information about employee contributions for each pay period.
Once the cash arrives, the provider can verify electronically that the amount corresponds to the records received.
EMX says having an electronic system is a cheap way for providers to receive and process this information. It says an electronic system would have to be in place by April next year and estimates a system would have to be available for trial by the end of this year.
Chief executive Caroline Lee says: “If stakeholder is to be cost-effective, messages from employers to product providers must be processed electronically.
“As EMX is an non-profit-making system which already has strong links to product providers in place, it is in an ideal position to offer this service.”