Super sector split on fintech opportunity

Superannuation funds were split into “two clear camps” when it came to dealing with fintech disruption, with half the industry pushing to integrate new technologies into their business, while the other half was running scared from the potential risks of partnering with fintechs, according to PractiFI.

Speaking to financialobserver, PractiFI chief executive Glenn Elliott said there were “massive differences” between how super funds were responding to the opportunity digital innovation presented them, but that did not necessarily depend on the size or age of the fund, with some traditional industry players excelling as much as new industry entrants.

“There are those that are embracing fintech with great vigour and are on the front foot in the way they engage with vendors and understand risk assessments and due diligence, but there are still a number of funds that don’t see the opportunity at all because it all seems too hard,” Elliott said.

“Some of the digital advancements from funds like Care Super and administrators like Mercer have made huge drives in terms of efficiency and reach to members, so there are a lot of great examples and there is no question that the message is starting to get through.”

Elliott, who addressed the Fundtech 2017 technology forum in Melbourne last week, said fintechs could play a valuable role in helping super funds better understand their members and engage with them on the topics they were most interested in, citing new tech-focused fund Spaceship as an example of an industry player doing this effectively.

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Source: Super sector split on fintech opportunity – FinancialObserver.com.au