In 2024, Australia saw its superannuation fund assets hit an all-time high, but this achievement was accompanied by a critical reality check in the area of member servicing. Regulators turned their focus to significant delays in processing death and disability insurance claims, some of which dragged on for over a year. The Australian Securities and Investments Commission (ASIC) described the issue as “widespread,” warning CEOs across the board that they would be held accountable for any gaps in member service.
Looking ahead to 2025, our superannuation industry outlook indicates that high-quality member servicing is poised to be the top priority shaping the sector. Superior service has long been a key competitive edge, but given last year’s developments, it has now become a regulatory imperative.
Let’s not forget that superannuation funds do take member servicing seriously. The real hurdle is delivering top-notch service consistently to vast numbers of members, sometimes numbering in the millions. This challenge is intensified by the pressure to cater to members’ desires for personalized, low-touch experiences. Members want their funds to recognize them, offer relevant advice, and support them throughout their financial journey—be it pre-retirement, during, or post-retirement.
Technology is central to enhancing member experiences. While funds have historically invested in systems aimed at boosting operational speed and efficiency, the recent trend is towards deploying advanced technologies that offer insights into member behavior. This allows funds to personalize the experience for each member with incredible accuracy.
Significant investments are also being made in digital tools to address the “advice gap.” It’s simply impractical to engage each of the 23 million members in regular one-on-one discussions with a human advisor. Here, digital communication channels, easy access to information, and transaction tools become invaluable. A sophisticated digital advice engine can provide tailored planning guidance by analyzing a member’s account history and financial profile. Many members, especially younger ones, tend to prefer these online self-service options over direct human interaction.
Nevertheless, funds need to be prepared for various interaction preferences among their members. This includes having a knowledgeable and responsive person available when members call with queries or concerns. By employing flexible service models and omnichannel communication strategies—including web, voice, text, and email—funds can effectively engage with members on their preferred platforms.
Implementing a state-of-the-art technology platform not only helps ensure superior member service but also demonstrates to regulators that funds are committed to fulfilling their member obligations. Our analysis, titled ” “, delves into this subject and examines other key issues currently shaping the superannuation landscape. These include cybersecurity, financial wellness, post-retirement strategies, and the need for fund managers to embrace emerging technologies sooner rather than later. For a comprehensive look at the challenges and opportunities in the year ahead, we invite you to download the full report.
