Customer experience key to Stronger Super success
Friday 17 February 2012 — Australia’s superannuation sector is making inroads but still has a long way to go to be ready for the government’s Stronger Super reform according to the results of a new industry report.
Preparing for Stronger Super is the second time Ernst & Young and the Association of Superannuation Funds of Australia (ASFA) have surveyed the Australian superannuation sector to assess the industry’s progress towards being ready for the proposed 2015 regulatory changes.
According to Ernst & Young’s Oceania Assets Management leader, Graeme McKenzie, while there has been some advancement in terms of industry preparedness, there is still much more work that needs to be done.
“Stronger Super is a game changer for the superannuation industry and it is pleasing to see the progress that has been made over the last twelve months,” McKenzie said.
“The results of our survey show the superannuation industry is now more confident in their level of preparation for the reforms across many areas including technology and data, business strategy, communication and reporting.
“However it also highlighted some significant areas where the industry is still underprepared, most notably in relation to members and employers.
“The majority of superannuation industry executives surveyed said they expected to lose less than 10 per cent of their members through account consolidation as a result of the Stronger Super reform but, given the high number of multiple member accounts, the reality is likely to be significantly higher in some instances.
“In the new regulatory environment, customers’ experience will be the key to attracting and retaining members and employers. Build it and they will come is no longer an option,” McKenzie said.
“Funds will need to invest in developing strategies to help them better understand their customers, create the solutions they require and deliver them via the appropriate channels.”
ASFA CEO, Pauline Vamos, agreed the Stronger Super reform provided an opportunity for renewal of the superannuation industry but stressed that acting now was key.
“Those adopting a wait and see approach are at risk of being left behind. The funds who are well prepared will be best placed to navigate the changing regulatory landscape and identify opportunities for competitive gain as a result of the reforms,” Vamos said.
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