In the wake of Royal Commission into Financial Services and the Productivity Commission, super funds face increased regulatory and market pressure to ensure their products and services provide members with true value.
Delivering on this promise inevitably involves funds reducing their cost-to-serve, which can be challenging amid rapidly growing demand for more sophisticated, mobile-first offerings and margins that are already tight. Funds that continue to rely on legacy technology infrastructure and outdated operating models with high operating costs find themselves in a bind. Without the flexibility to swiftly respond to increased compliance obligations and member expectations, they often turn to makeshift, bolt-on solutions only to find themselves caught up in a costly and complex web of largely incompatible systems.
Other superannuation providers that outsourced their administration at a time when it was the only option that made economic sense, find that advances in technology have opened up the choices available, not just to their fund, but to all superannuation providers. The result is a hyper-competitive superannuation marketplace, where only the very best funds will survive.
For too many super funds, yesterday’s way of working is limiting their ability to respond to today’s challenges. To deliver members true value, providers must transition to a new, technology-led solutions that fundamentally reimagines superannuation administration. By capitalising on flexible technologies and hybrid operating models, funds and administrators can work smarter, not harder.
Today, most administration tasks – such as processing a contribution, paying a benefit, or making an insurance change – are ripe for automation and the application of AI techniques such as machine learning. The new approach enables back-office administration to be handled via a repeatable, efficient commodity-based processing engine. Pre-configured to an industry-standard operating model, the new model delivers near-100 per cent straight-through processing metrics, and automates exceptions that are normally dealt with manually.
With a technology-led approach to superannuation administration – that includes extensive automation, AI and true system integration – super funds and administrators can transform their administration capabilities. This new way of working opens the door to unprecedented cost efficiencies and better targeted resources that deliver true value. Delivering value to members is just one of the key benefits stemming from reimagining superannuation administration. The other benefits include: New World Engagement, Unique Insight and Transparency and Control. To find out more on all key benefits read Reimagining superannuation. How super funds can survive and thrive by taking control of their entire member journey.