Superannuation regulations have changed a lot over the past ten years. Those changes are sweeping and ongoing, so the industry has experienced pressures it never had to account for before.
Some business practices that used to be common will not be possible anymore because of measures like account “stapling” and the changes to permissible fees that got brought in during 2019’s Protecting Your Super reforms. Furthermore, over the last two years, the covid-19 pandemic has placed stress on the industry, as public health orders have affected workers and that has in turn reduced the amount of money that employers put into employees’ superannuation accounts.
All of these factors mean that superannuation funds must change their operations in line with new regulations, all the while making sure that they are getting the most out of the resources that are available to them.
Technology has a significant role to play in this new superannuation landscape. Using data-driven insights will help take a lot of the heavy lifting out of the way super funds must now do business.
- Attractive offerings for individuals gain increased importance
Superannuation account stapling, to be introduced in November 2021, means that accounts, via employees’ Tax File Numbers, will follow members across jobs. Combined with the first round of public performance testing introduced in July 2021, members will be better able to assess and control their superannuation than ever before. In light of these changes, super funds need to appeal not just to employers, but to individual members.
Strong communication tactics and attractive offerings made to individuals are becoming more important, and super funds will improve return on investment when they use data-driven insights about their members to personalise communications and target specific segments.
- New compliance and reporting obligations represent a new operational challenge
Super funds now must report on some matters to the ATO and communicate more frequently with their members. New regulations about surrendering low-balance and inactive accounts to the ATO make it more important to become “stickier” with members: to keep up to date with their information and making sure their circumstances are correctly recorded.
Using third party knowledge bases, like the Australian Death Check or the National Change of Address service, will allow super funds to reduce problems associated with incorrect or obsolete contact information.
- Diversify member acquisition sources and increase sales efficiency
With revenue reduced, superannuation funds must get the greatest value out of the resources already available to them.
Sales teams often work with minimal information and individuals have to rely on their personal history for insights, which can end up being pretty hit-or-miss. Data-driven insights into targets for conversion can take much of the guess-work out, and give sales teams the best possible chances at success by empowering them with the correct information about the people and companies they’re contacting.
For a more in-depth look at the role of technology in the new landscape of the Australian superannuation industry, check out our whitepaper here