Australia has one of the best superannuation systems in the world. Recently, at the eighth annual Melbourne Mercer Global Pension Index (MMGPI), Denmark was praised for having the best retirement system in the world. Denmark and The Netherlands were the only countries to receive an A rating and Australia came in closeby ranking in third place with a B+ rating. Knowing this, how then can Australia’s system improve even more?
For superannuation funds, members are the most important factor. Attracting new members and at the same time keeping current ones is crucial to their survival and longevity. In 2016, in order to do this, what we’re seeing is the push to improve these superannuation funds’ lists via member engagement through digital and technological advances.
It’s no news that digital technology has been shaking traditional business models left, right and centre – but now, super is no different. Funds need to adapt in order to survive, and their survival will depend upon a fund’s ability to deliver more personalised experiences, advice and solutions to members. The need for a technology-driven, service-oriented business model is heightening and engagement is key!
“The average Australian is more engaged with computer games than their super,” reports Mercer Australia. “In fact, the average Australian spends 535 hours playing computer games each year compared to eight hours engaged with their super.”
When looking to the future of the industry, it is the personalisation of superannuation, or creating experiences based on individual circumstances, that looks to be a major factor for the future of the industry. According to research from the Australian Institute of Superannuation Trustees (AIST), the vast majority of super providers (83 per cent) expect to personalise each member’s fund experience by 2025.
In results from the same study, the industry reported how it intends to do this through harnessing technology by developing more personalised engagement as well as providing real time and bespoke data delivered on mobile platforms.
“Big data will play a vital role in the industry’s tech evolution. In order to personalise members’ accounts, providers will need the wealth of information that comes from big data. This input will help software calculate what each member wants to know and when,” reports Mercer.
Though nothing new, big data and data analytics have already begun to be adopted by the super industry. We have already seen super funds move to social media for engagement. In researching the social media presence of the top 50 super funds, IQ Group found that Facebook is used by 40% of funds, YouTube is used by 42% of funds and Twitter is used by 36% of funds.
“Keeping pace with the digital innovations and ensuring that members are provided multiple platforms to access their information,” reports the AIST. “Providing a seamless, anywhere, member interaction. Technology will continue to revolutionise our industry and how it meets clients’ demands.”
While some funds have begun making moves already to improving their data analysis and insights in comparison to other industries – super has a long way to go!
Author: Ivan Micallef
Client Services | Technology, Digital & Projects
Talent Web Consulting