Figure 1: Summary of reforms and their implications.
Over last eighteen months, large industry and retail funds lost significant assets, affecting their fee income dramatically in the context of early-exit schemes. New contributions from millennials members and gig workers are therefore very important. However, these members tend to have different priorities and significantly different service needs than those in regular salaried jobs. Further, they expect the best of digital experiences offered by FinTechs and investment start-ups.
Unfortunately, many established funds are working with inflexible administration platforms, archaic technology architecture, and outdated approaches. To keep pace with changes, these funds are updating everything from operations to infrastructure to customer relations. They are shifting focus from employers to members. They’re also replacing their rigid operating models with agile ones, with focus on automation, efficiency, and design-led experiences, which will help them build resiliency and better address the changing needs of new and existing members.
Emerging technology: Empowering advanced operating models
Regulatory reforms offer a great opportunity for superfunds to review their strategic priorities and create a more efficient, experience-driven, profitable fund. Adopting human-centric experience as a strategic priority can catalyze the above transformation, and tech-driven operational models can elevate user experience while streamlining processes. Strategic changes like these can help develop powerful capabilities that make it easier to respond and adapt to change.