By Scott Kendall, Superannuation Product Lead, Bravura
With research from ASFA earlier this year finding that Australians from non-English speaking backgrounds (NESB) are facing a retirement savings gap when compared with the overall population, superannuation funds are under growing pressure to ensure that they are helping all members achieve better retirement outcomes.
Although various policies are being floated to tackle the current retirement gap, superannuation funds are increasingly turning to technology help to better serve underrepresented groups, addressing disparities in access, engagement, and financial outcomes.
So, how can superannuation funds use digital-first operating models to make good on their commitments and improve inclusivity?
Improving Accessibility Through Digital-First Operating Models
Digital-first operating models are revolutionising how super funds interact with their members. For underrepresented groups, such as those from lower-income backgrounds, non-English speakers, or individuals in remote areas, traditional access to financial services has often been limited.
Technology breaks down these barriers by providing easy access to information and services through mobile apps and websites.
For example, mobile-first strategies are particularly effective in reaching younger members or those in rural and remote areas. These platforms offer features such as 24/7 account access, real-time account updates, digital transaction processing and online calculators and planning content, empowering members to manage their super more effectively.
Imagine a farmer in the Western Australian wheat belt who wants to make a withdrawal from their superannuation account. Previously, they might have had to post a certified copy of their ID, along with a paper withdrawal request form. With digital-first operating models, members can instead lodge a digital request that incorporates online ID validation, saving a significant amount of time and effort on the members’ behalf providing they have a reliable internet connection.
Personalisation through Data Analytics
Data analytics allows super funds to better identify and understand the unique needs of underrepresented groups. By analysing member data, funds can identify patterns in behaviour, preferences, and financial outcomes. This insight enables them to tailor products, services, and communication strategies to better meet the needs of diverse members.
For instance, if data reveals that certain demographics are less likely to engage with their superannuation, funds can create targeted educational content or personalised nudges. These personalised interventions can help bridge the knowledge gap and encourage more proactive management of super accounts, leading to better long-term outcomes.
Enhancing Financial Literacy through Educational Tools
Many vulnerable groups face challenges in financial literacy, which can lead to suboptimal retirement outcomes. Technology provides an opportunity to deliver customized educational resources that are accessible and easy to understand.
Super funds are increasingly using online calculators, interactive tools, and video content to help members understand complex financial concepts. These tools can be tailored to different levels of financial literacy, ensuring that all members can benefit from the education provided. For example, a super fund might offer educational content in multiple languages or provide simple, jargon-free video explainers of investment options to better support NESBs.
Inclusive Communication Strategies
Communication is a critical area where technology is making a difference. Traditional communication methods may not effectively reach all members, particularly those who are non-native English speakers or have limited financial knowledge. Digital communication tools, including SMS alerts, chatbots, and email campaigns, allow for more inclusive and frequent engagement.
Technology enables super funds to segment their member base and deliver targeted messages that resonate with specific groups. For example, funds can send personalized reminders about contribution deadlines or offer tailored content based on a member’s life stage or financial situation. By communicating in a way that is relevant and accessible, super funds can foster greater engagement among underrepresented groups.
Addressing Gender and Cultural Gaps
Technology also helps super funds address the gender and cultural gaps in retirement savings. Women – who also experience a large retirement savings gap along with non-English speakers according to ASFA – and certain cultural groups often face unique challenges, such as lower lifetime earnings and career breaks, which can impact their super balances.
Super funds are using technology to offer solutions tailored to these needs, such as tools that simulate the impact of career breaks on super balances or provide advice on catch-up strategies. Additionally, some funds are developing culturally sensitive products and services, recognizing the diverse needs of their members.
Supporting Indigenous and Remote Communities
For Indigenous communities and those living in remote areas, technology can be a lifeline to superannuation services. Digital platforms and mobile apps can provide access to services that would otherwise be unavailable. Moreover, technology can facilitate the delivery of culturally appropriate financial advice and support, ensuring that these communities are not left behind in the retirement savings landscape.
Introducing Bravura’s Sonata Alta
Technology is a powerful enabler for superannuation funds aiming to better serve underrepresented groups. By improving accessibility, personalisation, financial literacy, communication, and inclusivity, technology helps ensure that all members have the tools and resources they need to secure a comfortable retirement. As super funds continue to embrace digital innovation, the gap between different demographic groups in retirement outcomes can be significantly reduced, leading to a more equitable and inclusive financial future for all.
Bravura’s Sonata Alta is the industry’s leading digital-first operating model to help funds meet and exceed these expectations. Built on modern API rich architecture, with strong data-protection, scalability and straight-through processing (STP) capabilities, it is helping firms optimise the member digital experience, and creates valuable back-end efficiencies.
To find out more visit here or get in touch to find out how we can help your organisation today.
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