Fit for purpose administration systems are crucial to the efficiency and effectiveness of our superannuation and wealth management industries. This is a topic that I have followed passionately for over 20 years as the risks from inefficient systems, particularly legacy systems lead to errors relating to storage, calculation and communications.
IT tools are better than ever, and this means there is a much greater possibility funds and wealth managers can deliver a system which is user friendly and more efficient than ever. While there is a cost to digital acceleration – particularly as we re-shape how we engage with members and where we work in our long-term response to COVID-19 – there is a significant cost benefit.
IT transformation programs will always need to continue. In the instance of IT fatigue an agile approach where you focus on component by component rather than a big bang approach may be more suitable. Its incremental, achievable and delivers good controls. For some it’s more of a start-up approach and philosophy but it’s had significant success when it comes to successful change management. And for the superannuation and wealth management industry technology transformation programs need to look out for a 3 – 5 year horizon. It takes time to think through this level of change and plan for it. Identifying and working with the right provider is also another key consideration.
Recently I reflected on 21 years of IT change for Actuaries Digital – you can read all about it here.
Sean is Managing Director of McGing Advisory & Actuarial and is currently Deputy Chair of the ASFA Victorian Executive. These views are his own personal views.
Sean and the team at McGing Advisory & Actuarial provide a wide range of Superannuation support services including administration, investment, insurance, risk, governance and actuarial advice.