For quite a few years now, the superannuation sector has been awash with talk of change. Every year, the call grows louder - underpinned by new developments that, at times, are both startling and game-changing.
It's fair to say that 2019 is no different for Australia's superannuation funds ('funds'). In fact, the need for change has never been more important, given the rapid shifts in regulatory requirements, member needs and preferences, competition and technology. Now, of course, the need to restore public trust can also be added to that list.
With such a rapid pace of change, some funds may take a wait and see approach - holding course until there is more clarity on regulatory changes. In our view, that would be a mistake. Funds that aren't focused on transformation now will find themselves a long way behind later. In this environment, these are the ten key superannuation trends for 2019.
1. Digital to the core: unlocking the door to transformation
There is a growing move toward taking a more comprehensive 'digital to the core' approach to superannuation. This is the need for funds to digitize not just the front office, but, their operations and registries as well. This is a critical step for two reasons:
Firstly, member experience is more than the front end. The processes that underpin that experience must be optimized as well.
Secondly, it will be impossible to fully leverage the many developments behind these trends without a digital to the core approach. Think about this as you read through the developments and trends below. How will any fund manage these issues without a true end-to-end, digital to the core approach?
For more information on implementing a digital to the core strategy, please see the recent FS Super paper 'Digital to the core'.