The shape of superannuation to come

Superannuation, super system, super fund, retirement income, pension, Australian, wealth management, Bravura, finance software, financial planning, retirement planning,

The superannuation system has undergone sweeping changes in recent years and the dust has yet to settle. According to a finance software provider, tomorrow’s super system will look markedly different to the one we know today.

In a recently released white paper, software company Bravura said Australia’s super system is likely to undergo a number of changes to meet the new regulatory environment and the advancement of modern technology.

The role technology is slated to play in the delivery of superannuation services in coming years is likely to increase drastically, the company said.

Super funds will be able to collect “unprecedented” amounts of data from their members and use this ‘big data’, in conjunction with other analytical tools, to provide “more meaningful, hyper-personalised services”.

“Beyond their own big data and analytics capabilities, funds will increasingly look to employ artificial intelligence in the form of cognitive computing services to support critical functions such as risk management and compliance,” Bravura said.

Robo-advice offerings will also become more common and advanced as increasingly clever digital advice models begin to emerge and the funds have to invest in this technology to remain competitive.

“In the years ahead, super funds wishing to remain competitive must enhance their digital advice offerings by looking for new ways to cost-effectively provide advice and information to their members – from the very simplest online advice right through to the more complex, holistic financial and retirement planning,” Bravura said.

“With the robo-advice market predicted to grow significantly over the next few years, funds not investing in this area ignore it at their peril.”

Finally, and perhaps most significantly for investors, super funds are “moving away from a one-size-fits-all approach towards a more personalised product and service delivery”, Bravura said.

“Rather than viewing their members as a homogeneous pool, astute funds are learning a lot about their members from their demographics.

“The pursuit of true member-centricity will require funds to deploy administration systems that are specifically architected to deliver members targeted, personalised and holistic solutions. Each demographic requires a different approach and funds need the system capability to easily and cost-effectively tailor their messages, products and services.”

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