AFP Capital has been recognised by World Finance magazine for its leadership and excellence in Chile’s pension market. CEO Renzo Vercelli shares insights on what this honour represents, the company’s journey toward achieving it and how AFP Capital is navigating the most significant pension reform since Chile’s system began.
Can you describe what it means for AFP Capital to receive this international recognition?
For us, it is a source of great pride, and this recognition validates the effort and dedication of the entire AFP Capital team, who work tirelessly, with innovation and focus, to build a very comprehensive and unique value proposition in the market, enabling us to advise our more than 1.4 million clients in building their pensions.
Chile is currently undergoing a major shift in its pension system. How did you achieve this recognition amid such significant change?
Indeed, this year saw the launch of a major pension reform, which acknowledges the importance of individual capitalisation, adjusts a universal guaranteed pension from the State, rewards the effort of saving for retirement with benefits, and implements a generational fund regime. Private sector administrators like AFP Capital are working with the utmost diligence and excellence to support this process operationally. In this context, amid all the changes required by the regulator to implement the reforms, we have also continued to develop an innovative value proposition for our clients.
Could you describe the key elements of that value proposition and why it might be so competitive in the local pension market?
Our value proposition is based on advisory services, with simple and accessible information, personalised attention, and clear services that make it tangible for each client throughout their accumulation and decumulation stages, so they can make the best decisions. We have seen that it is a differentiated value proposition, recognised and currently valued by our clients; this is reflected in our NPS, service and brand indicators.
What other factors do you attribute to AFP Capital receiving this award?
It has been recognised for its unique and innovative Interactive Streaming system, which is open and reaches more than four million people, including members, retirees and the market. AFP Capital also stands out for its strong focus on digitalising its services, currently offering advisory services through innovations such as remote video calls from anywhere in the country, appointment scheduling for members and retirees, and a website that will become the most comprehensive branch in the future. Additionally, for the third consecutive year, we have achieved international ISO 9001 and ISO 10002 certifications, which recognise the quality of our customer service model and our ability to resolve complaints and enquiries effectively. This makes us the only pension fund administrator with this double recognition, evidencing our ongoing focus on strengthening service channels to offer a people-centred experience.
It is also relevant to mention our leadership in generating returns for our members’ pension funds, which have consistently outperformed the rest of the industry over the past 60 months, thanks to the management of a highly experienced and specialised team in the various assets of portfolio management.
How does this recognition impact your relationship with members?
This award is not only a reflection of our internal work but also of the trust relationship we have built with our clients, who have chosen us to safeguard their future. It challenges us to keep improving, innovating, and responding to their needs with responsibility and empathy.
What challenges lie ahead for AFP in Chile, and how does AFP Capital plan to address them?
In March of this year, the 2024 Population and Housing Census revealed data confirming an evident reality: Chile is ageing. The percentage of people over 65 years old grew from 6.6 percent in 1992 to 14 percent in 2024. In the same period, the percentage of people under 14 years old fell from 29.4 percent to 17.7 percent. These figures not only represent a change in age composition but also raise fundamental questions about how we organise ourselves as a society, for today and also for the future.
Pensions are perhaps the most visible face of this phenomenon. The reform may help address this challenge to some extent, but further adjustments are needed. The retirement age in our country, currently 65 for men and 60 for women, seems insufficient in this context of greater longevity. We are facing a complex issue, considered politically incorrect to discuss, but inevitable to address. We must continue to tackle the low density of contributions by promoting a strong culture of long-term savings and moving toward a more formal labour market.
What are AFP Capital’s projections following this recognition?
This recognition drives us to redouble our commitment to excellence. We will continue investing in technology, training and service quality. We are part of SURA Asset Management, the largest Latin American manager of pension funds with more than 23 million clients, and from Chile, we want to keep contributing to our shareholder’s leadership with innovation, closeness, and solid results in profitability.
We also believe that being highlighted by World Finance at a global level is an incentive to continue strengthening trust and excellence in the Chilean pension fund industry, building on what we have demonstrated we do well.
