Super admin more than just record-keeping: Mercer
Superannuation funds should distinguish themselves in the market through product innovation and technology investment instead of engaging in price wars, Mercer believes.
Mercer financial services business leader in the Pacific market, Andrew Godfrey, said super administration remaining just a record-keeping service is no longer a sustainable business plan.
"Price wars are good for buyers in the short-term, however in the long-term it cuts into profit margins and threatens the survival of the business," he said.
"Integrating the superannuation customer experience — from first point of contact through to financial advice — is achievable, despite long held industry beliefs."
Noting that the industry has underinvested in administration, Godfrey said the average Australian spends 535 hours playing computer games each year compared to eight hours engaged with their super.
"However, disengagement shouldn't be confused with an audience who will not respond to a more personalised and meaningful service, delivered with the right technology and channels, when and where they want it," he said.
The comments came as Mercer launched a project, known as the Super Genome Project, in a bid to move away from transaction-focused administration systems, which it called rigid, to market automation, digital transformation and customer management.
The project aims to reduce paper work and complexity for members, abolish three legacy systems, and launch five customer platforms.
Mercer has rolled out Mercer Edge, which is a data-driven analytics, marketing and strategy platform for super funds, as well as a member registry, and multi-manager investment solutions for customers and institutions with different risk profiles and tax status.
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