Super funds not using digital advice will get left behind
Superannuation funds that fail to engage with members through digital advice could find their products aren’t competitive, as rivals continue to build a greater holistic suite of services, according to Bravura Solutions.
The wealth management software provider said the need to deliver quality financial advice at scale was growing, as superannuation funds needed to close the advice gap for young members and offer accessible advice options to a larger percentage of their member base.
Rest Advice Online, which had been powered by Midwinter AdviceOS since 2016, had seen a 252% year-on-year increase in interactions over the 2019-20 financial year, with younger members and women leading uptake.
Paul Dunn, Bravura client relations and sales director – APAC, said offering greater levels of support delivered through scalable digital advice had become an important way for funds to engage and educate members.
“We are currently working with major super funds to ramp up their digital advice offerings,” Dunn said.
"Older members with higher balances naturally seek financial advice, often prompting them to switch to a new fund or a self-managed super fund (SMSF).
“This undermines the scale of the fund they are leaving, which is critical to keeping fees and other costs low. Digital advice delivered at scale is part of the solution."