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New super entrants not a threat to big funds
The new superannuation entrants will not be a real threat to traditional super funds unless they do not recognise the changing consumer needs and attitudes that new entrants satisfy, SuperEd believes.
SuperEd chief customer officer, James Coyle, said new entrants such as Spaceship, Zuper, and Grow Super were appealing to people who wanted to have more control and influence in what they money was invested in.
He also said it reflected the fact that many people wanted to be members of a super fund that they felt were talking to them and understood them.
“Many of the traditional super funds have a strong retirement focus, that’s what super is for, but it tends to disenfranchise a lot of younger people because retirement is not really on their agenda,” he said.
“But investing in something they’re more interested in, talking to them in a slightly different language and tone, those things are just appealing to a different demographic now.
“I think for more of the traditional funds in my view, one of the things they need to be wary of is they are failing recognise this changing consumer needs and attitudes. I don’t deep down think that new entrants like Spaceship or Zuper will be a real threat to AustralianSuper.”
However, Coyle said large funds could be threatened by their failure to recognise the trend that the new demographic and generation could potentially feel that the big funds were not talking to them.
“I don’t think that was happening 10 years ago or even five years ago and that is what has created the opportunity for these funds,” he said.
“I strongly feel that super funds need to recognise this emerging trend and need amongst people and a means of dealing with it. Otherwise, one of these new entrants might actually get a meaningful share of the market.”
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