Super funds angling for more digital advice

13 June 2017
| By Hope William-Smith |
image
image
expand image

Australia’s super funds are “digital ready” and are looking to extend their digital advice offerings but still have work to do in increasing capabilities, according to the Association of Superannuation Funds (ASFA) and Decimal.

The survey of 15 major Australia super funds representing close to a third of Australian Prudential and Regulatory Authority (APRA)-regulated funds showed most had spent $2 million or more on digital projects so far.

While less than a quarter (20 per cent) of funds had invested in digital advice, numbers were double those at four years ago, and 80 per cent of funds had only been in the development process for less than three years.

Less than 30 per cent of funds had begun the implementation of digital advice tools such as enhanced mobile experience, with the ASFA/Decimal survey showing investment this far has centred on foundational capability upgrades, data analytics capabilities and administration system and calculator overhauls.

Decimal chief executive Nic Pollock said an increase in digital offerings was crucial for super funds as it played a major part in the retention of funds under administration (FUM).

“Going digital can lift engagement and help drive retention of members and grow their balances; it offers a recipe for successful innovation and welcome innovation,” he said.

“Multi-channel digital advice offerings via compliant and automated advice platforms would enhance fund brands and reputations.”

Half of the surveyed funds said the use of digital advice was difficult to understand, whilst 35 per cent said adoption took too much time and effort, and 28 per cent cited lack of trust.

ASFA chief executive, Martin Fahy said: “The survey showed the main impediments to implementing digital advice were business case and access to resourcing”.

“It is clear that regulatory and policy changes have crowded out innovation.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 4 months ago
Kevin Gorman

Super director remuneration ...

1 year 4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 4 months ago

Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed. ...

3 days ago

As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a discipl...

3 days 1 hour ago

Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April. ...

3 days 1 hour ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND