The ASIC report into death benefit claims revealing the devastating impact of poor industry practices on grieving Australians has again highlighted the pressing need for change. While some funds have taken up the cudgels, others are still playing hardball on improving their service offering.
A Retirement Income Covenant obligation notwithstanding, there is still a paucity of these complex products on offer. The Advice Through Superannuation draft legislation might offer a way forward.
Flexibility the key for super funds – SS&C
A recent client note from the big global technology company SS&C says there is a growing need for “flexibility, agility and resiliency” in both technology and operating models. While this might seem, at first glance, an obvious statement, it probably deserves some thought.
The client note, ‘Future Super: The Need to be Flexible’ says that, in looking at the developments in the Australian super industry, the factors are: the ‘flexibility’ to easily update and integrate systems as well as configure products, compliance, processes and member experiences; the ‘agility’ to operate sustainably at or ahead of the speed of members, the marketplace and competitors; and the need for ‘resiliency’ and redundancy in operations, backed by technology that allows flexibility in operating models, are all critical for success.
SS&C says: “The five trends in super identified by the client note all rely on, or contribute to, fund flexibility, including:
- The desire to differentiate and create value will spark a shift to hybrid operating models.
- The big will get bigger, but the benefits of scale will be slow to emerge.
- Artificial Intelligence, automation and data will cement themselves as critical drivers of sustainable growth.
- Innovative technologies will increasingly transform the way funds operate.
- Keeping up with regulatory change will remain superannuation’s number one challenge.”
The note says: “As super funds navigate through a constantly evolving environment, and even
as they face a once in a lifetime event with COVID-19, these five trends are rapidly becoming business-critical issues. Funds that are forward-thinking, flexible and agile will succeed, while risk-averse funds, with insular thinking, are likely to fail.”
– G.B.
