Why Superannuation Funds Must Regain Control Over Their Customer Communications in the Face of Growing Challenges
By Smart Communications
The superannuation sector in Australia is facing a turning point. With the industry nearing $4 trillion in assets, funds are confronting a series of interconnected challenges that are pushing the limits of their existing infrastructure. In particular, outsourcing administrative functions and customer communications to third-party providers is proving to be an increasingly risky proposition.
As the sector grapples with mounting pressures—from regulatory scrutiny to heightened member expectations—there has never been a more urgent need for superannuation funds to regain control over their member communications.
The Growing Strain on Infrastructure and Operations
Major administrators are struggling with resourcing, and claims processing delays have become a widespread problem. For funds, this isn’t just an operational issue—it’s a reputational risk. Members are already dissatisfied with delays, and as these issues grow more persistent, the sector will be forced to confront the reality that relying on third parties for critical operations may no longer be sustainable. Today, Members can move funds for any reason at any time, shifting the balance of power to the member and forcing funds to compete harder to retain customers.
With new changes, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) are increasingly scrutinising super funds’ operational efficiency. ASIC’s recent enforcement actions are a clear indication that funds must own their administrative obligations and ensure compliance, regardless of whether they rely on outsourcing. This puts even more pressure on funds to bring member services back in-house, ensuring they have full control over the quality and timeliness of communications – from routine updates like statements and tax notices to critical notices such as Significant Event Notices (SEN) and remediation alerts.
Regulatory and Governance Pressures Mount
The regulatory environment is evolving rapidly. ASIC’s increased enforcement actions emphasize that funds must be able to demonstrate compliance with timeframes, particularly in relation to processing claims. As the superannuation industry faces a shift in governance standards, many funds are also under pressure to align with the high expectations set by ASX-listed entities. This is further complicated by the fact that funds often outsource critical functions to third-party administrators, making it more difficult to maintain the level of oversight required.
The recent case of Cbus Super is an example of how outsourced claims processes can lead to systemic delays and dissatisfaction. This is a key moment for superannuation funds to rethink how they handle member communications and claims processing. By regaining control through a centralised, cloud-based platform, funds can ensure better oversight, improved compliance with regulatory timelines, and, ultimately, a more streamlined, efficient operation.
The Shift in Member Expectations
Another challenge facing the superannuation sector is the dramatic shift in member expectations. Today’s members expect the same level of service they experience with their digital banking apps—quick responses, transparency, and seamless engagement. However, many funds are still burdened by legacy systems and outsourced operations that cannot meet these demands. A member's interaction with their superannuation fund should be as easy as managing their banking app—fast, responsive, and personalised. Yet for many funds, the reliance on outdated technology and third-party providers stands in the way of delivering this experience.
In this context, regaining control over customer communications and claims processing isn’t just a matter of efficiency—it’s an essential step towards meeting the evolving demands of members. Super funds that invest in a centralised, digital-first platform will be able to deliver a modern, omnichannel experience that meets members where they are, providing them with self-service capabilities, real-time updates, and personalised communications that feel as seamless as modern digital experiences.
The Case for a Centralised, Cloud-Based Platform
Given these pressures, the time has come for superannuation funds to regain control over their customer communications, data collection, and interactions. A cloud-native platform like the Conversation Cloud offers a host of advantages that can help funds address their most pressing challenges:
1. Automated Workflows for Regulatory Compliance
Superannuation funds face increasingly stringent regulatory requirements, particularly when it comes to processing claims within set timeframes. An intelligent data collection solution like SmartIQ™ allows funds to automate workflows that meet statutory requirements, reducing the risk of human error and ensuring compliance with deadlines. By automating claims processing, funds can dramatically improve the speed and efficiency of their operations while ensuring they meet the compliance standards set by APRA and ASIC.
2. Real-Time Visibility and Reporting
A centralized solution provides real-time visibility into operational metrics, which is crucial for both performance management and regulatory compliance. With the ability to track processing times, identify bottlenecks, and gain insights into workflow efficiencies, funds can proactively manage their operations to prevent delays and improve service delivery.
3. Reduced External Dependencies
One of the key risks of outsourcing is the over-reliance on a small number of providers. This creates a systemic risk for funds that depend heavily on these providers. By bringing member services in-house, super funds can reduce their reliance on external administrators, giving them greater control over their operations and the quality of service they provide.
4. Enhanced Member Engagement
Members expect digital banking-level service, and a centralised platform enables superannuation funds to deliver. With omnichannel capabilities, funds can engage members through their preferred communication channels, whether that’s email, SMS, or online portals. This digital-first approach ensures that members have access to real-time information about their accounts, claims, and services. By offering self-service options, funds can reduce operational costs and improve member satisfaction.
5. Scalability for Growing Member Bases
As funds grow—whether through mergers, member retention initiatives, or industry consolidation—they need a scalable solution that can keep up with the increasing volume of communications and claims. A cloud-based solution offers the flexibility and scalability necessary to handle an expanding member base without sacrificing service quality or operational efficiency.
Conclusion: The Time to Act Is Now
The superannuation sector is at a crossroads, facing mounting challenges that demand decisive action. With infrastructure under strain, regulatory scrutiny intensifying, and member expectations evolving, superannuation funds must regain control over their operations to thrive in the future. By adopting a modern cloud-based customer communications management platform, funds can address their most pressing challenges—from claims processing delays to member engagement—and position themselves for long-term success in an increasingly competitive landscape.
Now is the time for superannuation funds to take control of their member services, enhance compliance, and deliver a modern, seamless experience that meets the expectations of today’s digital-first members. The choice is clear: outsource the risk or centralise control and lead the way in member service excellence.