Reimagining superannuation
BY ,  |  

Australian superannuation funds find themselves on the cusp of an exciting and challenging new era. With member outcomes now the core focus, funds are looking for ways to make their offerings more engaging and member-focused. This task has become more urgent due to a
confluence of events. The findings of the financial services Royal Commission have placed the industry under intense pressure to improve customer outcomes via greater transparency, lower fees and fit-for-purpose offerings.

With the Federal Government pledging to implement the Royal Commission recommendations, as well as additional compliance obligations coming into force, including the 'Protecting Your Super' reforms and APRA's Strategic Planning and Member Outcomes
Prudential Standard SPS 515
, there is mounting pressure on super funds to 'lift their game'.

Beyond our own backyard, we are seeing a regulatory focus on improving customer outcomes across wealth management markets globally. Greater transparency and disclosure of costs to customers and members is a key part of this trend. In New Zealand, for example, a recent review into the life insurance industry covered similar themes to the Royal Commission. In the United Kingdom, the government placed a 75-basis points cap on costs charged for default workplace pensions. And in Europe, a number of EU directives have been introduced to enhance privacy and consumer rights, including the General Data Protection Regulation (GDPR) and Mifid II

The rapid pace of regulatory and technological change has created a perfect storm for superannuation funds. Recognising that yesterday's way of working is limiting the ability of funds to respond to today's challenges, the marketplace is seeking a new, technologyled
approach that reimagines superannuation.

Specifically, a new hybrid operating model that allows funds to own their entire member journey, can deliver unprecedented control
over their data and operations. In the context of thriving in this new world of superannuation, this paper looks at the key benefits that funds will receive by leveraging a new technology-led business operating model.

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