Mergers and regulation slowing super innovation
Merger and regulatory pressures are slowing the rate of technological innovation in superannuation funds, according to SS&C Technologies.
Speaking at an international business review webinar, Jeff Arnold, director of sales and marketing at SS&C Technologies, said super funds were reluctant to be the first to innovate their operations because of the perceived costs of moving or transitioning to new technology providers and solutions.
“The c-suite, the board, the people within the organisation, they are busy, busy people, trying to combat all of these different pressures so having the time to really look at a new platform or a new provider is a big challenge,” said Arnold.
He also said super funds were naturally risk-averse and slower to digitally transform because they were in the business of protecting people’s money.
“So sometimes it takes brave leadership to really understand how some of these smart technologies are able to support their businesses in a way which allows them to leapfrog their competition and really differentiate themselves,” he said.
While there has been a historical lack of innovation, the merger trend was beginning to highlight cracks in the operational processes of super funds, Arnold said.
“As these funds merge, and become much bigger, the problems that they've seen historically double and treble so they're really having to look at new ways of operating and looking at hybrid models,” Arnold said.
Arnold described the hybrid model as outsourcing lower-value transaction points such as administration while insourcing higher-value operational components.
Recommended for you
Australia’s largest super funds have deepened private markets exposure, scaled internal investment capability, and balanced liquidity as competition and consolidation intensify.
The ATO has revealed nearly $19 billion in lost and unclaimed super, urging over 7 million Australians to reclaim their savings.
The industry super fund has launched a new digital experience designed to make retirement preparation simpler and more personalised for its members.
A hold in the cash rate during the upcoming November monetary policy meeting appears to now be a certainty off the back of skyrocketing inflation during the September quarter.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
