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Retail banks push for market share with lifecycle products
Retail banks will use lifecycle investment options in a push to capture a larger slice of the super industry market share, according to Mercers DC consulting leader Graeme Mather.
Mather said CBA, ANZ and Westpac would launch products next year, while Suncorp would launch its lifecycle investment option in December.
The retail players had the technology and resources and would make a push to attract new members while industry funds were busy with regulations, Mather said.
"The retail banks aren't silly. There are a lot of things going on within industry funds with the regulations, MySuper applications and APRA and governance standards - they're quite distracted," he said.
Mather said he expected to see strong marketing campaigns at the start of next year, centered around the convenience and simplicity of combining super and savings account providers, with the added benefit of having retirement savings managed through a lifecycle product.
"They've got people walking into the bank and with auto-consolidation they'll be saying 'why don't you have all your super in the same place you have your savings, it's easy, you change jobs every few years but you never change your bank, we can show it all on one page, keeping it really simple and by the way, we'll manage the risk for you as you get older through these lifecycle strategies'," he said.
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