Information overload repels fund members
An onslaught of information could well mean superannuation fund members are going to ignore what is on a super fund website, a chief behavioural economist said.
University of California professor Shlomo Benartzi told the 2014 ASFA Conference in Melbourne that super funds should think of themselves as digital fiduciaries in the digital technology era.
But he stressed that if members visit super fund websites, funds have to assume that they are not going to pay much attention.
"They're also not going to think about things as seriously as you think they should. The wealth of information creates scarcity of whatever information consumed," Benartzi said.
Super fund website effectiveness hinges on whether members trust that website, followed by its visual attractiveness and user friendliness.
Benartzi wondered if super funds should build an application that allows members to take actions on an iPhone when the market fluctuates, like making portfolio structure changes and buying annuities.
But Benartzi argued none of this will bare fruit unless super fund websites personalise their features and reports to suit their particular members, and then test the site to make sure it meets members' needs.
"Members judge websites in 50 milliseconds so when people come to your site, you're not given a second chance. You're not even given a first chance."
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