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ClickSuper readies super funds for SuperStream
With SuperStream now guaranteed to go through in some form, Cuscal is using its payroll and banking transaction experience to provide back-office solutions to superannuation funds through its ClickSuper product.
"Super is crying out for more effective e-commerce solutions and payments, so it was an opportunity for us to move into that space," said Cuscal general manager Adrian Lovney.
The three main features of ClickSuper are wholesale processing which is targeted at payroll providers, a white label solution developed for super funds to distribute to their employers to make contributions and a rollover facilitation option, Lovney said.
"We were asked by the industry funds forum to develop for them using our technology a rollover hub and using technology to make rollovers easy between funds," Lovney said.
Another key feature that will appeal to the retail sector is a retail contribution facilitator that reduces the burden to make payments through multiple channels, according to Cuscal's senior manager of payments and superannuation, Bruno Di Mattia.
A business might have to make payments to several different super funds chosen by its employees, and those super funds might each require a separate method of payment such as BPay, direct debit and cheque, Di Mattia said.
"ClickSuper removes that burden and allows the payments to all go through one channel. We decided it was important to facilitate a simple online payment process," he said.
By capturing employee details and consolidating employee details through the ClickSuper product, once each employee is set up an employer can set the payments to go through automatically, he said.
From the super fund's perspective, receiving electronic payments can be less convenient if the payments arrive in the fund's account without sufficient information and the fund then has to go back and find out where the money came from, Lovney said.
With the ClickSuper system the data is always consistent and the fund can access that data instantly, and that makes it easier to receive electronic payments, and the same can be applied to rollover information, he said.
One of the major industry funds using ClickSuper is Sunsuper, and Francis Cox, general manager of IT and operational capability at the fund, said the streamlining of the rollover process was one of the main benefits of the ClickSuper product - for both funds and members.
"The process of dealing with rollovers in the conventional mode is pretty much all by mail exchange. There are direct financial implications from converting those pieces to electronic exchange but there's also a massive positive benefit to the member experience," he said.
As much as 80 per cent of rollovers initiated tend to fail, mostly because the process becomes too difficult for members, and in addition the multi-stage process of completing the rollover means there is a substantial period of time where member's funds are not invested, he said.
"The amount of time that it takes for a cheque to be posted and banked and deposited in a member's account represents time that the member's money is not invested in the market and also [time] they're not insured, so there's a real concern to keep that window of time as short as it can be," he said.
It would be unfortunate if something happened in that window and the insurance the member was relying on was not in place, he added.
There was also a concern around how long it could take for superannuation guarantee (SG) payments to reach an employee's account without streamlined systems. If an employer was only making payments quarterly but deducting weekly SG contributions there could be a real loss of value to the member, he said.
Purely from the fund's point of view, a key factor is to be able to get good quality data linked with a unique identifier so that money can be reconciled without human intervention, Cox said.
AUTHOR
Mike Taylor
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