It’s time to modernise, innovate and simplify business operating models.
In the past 20 years the Australian Superannuation system has enjoyed enormous growth driven largely by the government’s compulsory contribution regime and strong investment market returns. As a result, superannuation funds in the system have also shared in this growth and are now complex, multi-million dollar businesses that provide critical retirement products and services.
The largest superannuation funds now rival some of the country’s largest corporates in terms of size, complexity and responsibility to stakeholders. Yet, how many superannuation funds have actually paused to evaluate their business against the fund strategy and global best practice? Anecdotal evidence suggests that funds have operated under the same business model for the past 20 years and have just kept adding people, products and bespoke processes to cope with the growth. Is this a sustainable model?
As the Australian Superannuation system is predicted to more than double over the next 10 years, coupled with the arrival of innovative and disruptive technologies, Superannuation Trustees should insist that Management is continuously reviewing their business to ensure the most appropriate operating model is in place to service members now and into the future.
Naresh is a financial services, insurance, superannuation and wealth management industry stalwart. His recent attendance as the ASFA Conference 2016 “Inspiring Superannuation Excellence” on the Gold Coast and his work with leading organisations in the industry has prompted this piece on Australian Superannuation.