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Super funds need to move beyond calculators
While superannuation funds understand digital advice is important, some are yet to move beyond calculators on their website, according to a report.
The Association of Superannuation Funds of Australia (ASFA) and Decimal’s ‘Digital readiness of superannuation funds’ joint report found that while the majority of funds surveyed had a very good understanding of what digital advice involved, there was some uncertainty on the part of funds on how to implement digital advice.
The most important digital advice features for superannuation funds are that it is compliant, mobile responsive, and easily integrated with information and executive processes.
Half of the funds said their starting points for implementing digital advice were from calculators, and the other half through a full omni-channel solution across digital, phone, and face-to-face.
The report said as funds were typically still at an early stage of adoption of the provision of digital advice, much of the digital investment had related to the establishment of the digital tools and facilities needed as the foundation for provision of digital advice.
“Without these basic digital capabilities, it generally is not possible to move on to the provision of more fully developed digital advice provision,” the report said.
However, despite funds seeing the provision of digital advice as being a must have the report found that a number of barriers existed.
These barriers were business case approval, lack of resources, the fund had not thought about it, it was not a priority for the firm, and no one owned it.
Most of the funds reported an expenditure of more than $2 million on digital projects.
“…while superannuation funds recognise the provision of digital advice and greater digital readiness more generally is essential, they still have some way to go in terms of improving the state of their digital readiness,” the report said.
“For the funds with more advanced digital capabilities, digital advice can be seamlessly integrated into execution of insurance, contribution, investment, and other decisions of fund members.”
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Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
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