Super funds act on member outflow
Superannuation funds have put contingency plans into place to combat member outflow and industry consolidation, according to a survey conducted by Bravura Solutions.
The survey aimed to gauge how super funds are planning to use innovation to differentiate themselves in the post-GFC and post-reform era.
Member engagement and communication emerged as a dominant theme, according to Darren Stevens, director of strategy at Bravura Solutions, who said this would be the key differentiator of the future and a "buffer against industry consolidation".
More than 40 per cent of the 200 participants said that customer service levels would be the key differentiator in the post-MySuper world.
When asked what their priority was in terms of innovation and technology, 46 per cent of respondents chose personalised and targeted member communications, the biggest challenge to which would be developing engagement tools.
"Statistics such as these show that rapid product innovation will be a key priority, but that communication and engagement is pivotal," Stevens said.
"It seems that the common opinion is that the future will be defined by the ability to provide an excellent customer experience, and that this will be a key differentiator for funds going forward."
The question this begs is whether the existing technology in place at super funds will be a facilitator of this experience or an impediment, Stevens added.
He said scalability, automation, flexibility, configurability and integration are key.
"Without technology that can fulfil these imperatives, achieving the scale, the agility and the depth of member understanding and interaction necessary will be difficult," Stevens said.
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