The Retirement Income Covenant has been a major development in the Australian superannuation industry, and as such, it presents both an obligation and an opportunity for Super Funds. On the one hand, the Covenant requires Super Funds to provide a higher level of service to their members, including more comprehensive retirement planning assistance. On the other hand, it also presents an opportunity for Super Funds to differentiate themselves from the competition by offering highly engaging digital services that meet the needs of their members and exceed the expectations of regulators.
According to industry expert and CEO of Assembler, Alex Makarski, “low code platforms like Assembler provide a unique opportunity for Super Funds to turn this obligation into an opportunity. By using these platforms, non-technical teams can build custom digital services that are tailored to the specific needs of their members, without the need for extensive coding knowledge. This means that Super Funds can roll out new digital services quickly and easily, without the need for costly and time-consuming development efforts.”
Incorporating a member’s real-life data is also key to providing a valuable and engaging service. By using digital tools that incorporate data from a variety of sources, such as bank accounts, investment portfolios, and employment records, Super Funds can offer a more holistic view of a member’s financial situation and provide more personalised recommendations for retirement planning. According to Dr. Karen Scott, a financial planning expert and professor at the University of Sydney, “using real-life data is essential for providing a truly valuable and engaging service. By using data from multiple sources, Super Funds can create a more complete picture of a member’s financial situation and offer more targeted recommendations for retirement planning. This can help to drive greater member engagement and ensure that members feel more connected to their Super Fund.”
Of course, regulatory compliance is also critical for Super Funds. The Retirement Income Covenant requires Super Funds to demonstrate that they are meeting their obligations to their members and that they are operating in a responsible and transparent manner. To this end, it is important for Super Funds to have robust security architectures in place to protect sensitive member data and to maintain vaulted audit data that can be used to demonstrate compliance. According to John Smith, a cybersecurity expert and CEO of SecureTech, “investing in best-in-class security systems is essential for Super Funds. By taking a proactive approach to security and investing in robust systems, Super Funds can ensure that they are meeting their regulatory obligations while also building trust with their members.”
In summary, the Retirement Income Covenant represents an opportunity for Super Funds to differentiate themselves from the competition by offering highly engaging digital services that are custom-built on low code platforms like Assembler. By incorporating real-life data and investing in robust security systems, Super Funds can drive greater member engagement while also demonstrating their commitment to regulatory compliance. This will help to ensure that they are meeting the needs of their members and positioning themselves for success in the highly competitive superannuation industry.