POWERED BY MOMENTUM MEDIA
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
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
