After interviewing executives at some of Australia’s largest superannuation funds, J.P. Morgan’s 2024 Future of Superannuation report highlights how data, artificial intelligence (AI), and digital transformation are reshaping the industry.
Australia’s $3.9 trillion retirement system is among the world’s most advanced. Its diverse landscape features mega-funds propelled by strong returns and mergers, as well as smaller niche funds. Yet all face similar challenges amid economic uncertainty, rising geopolitical risks, and regulatory changes.
In response, superannuation funds are continuing to focus on innovation, leveraging data insights and digital transformation to boost member engagement. As funds continue to grow and merge, improving operational efficiency becomes essential for incremental gains. And with further adoption of AI and automation, significant benefits are anticipated in the coming years.
J.P. Morgan interviewed executives at some of Australia’s largest super funds supplemented by an industry poll, to gauge their views on just how important these elements are, particularly as work practices and the pace of innovation have radically accelerated in recent times.
Following are some of the key highlights:
- As investment portfolios become increasingly complex, advanced data management systems are able to provide funds with up-to-date, detailed insights.
- Funds are constantly refining their processes and procedures to create greater ‘operational alpha’ as they manage their increasing size.
- Funds are investing heavily in digital transformation strategies to boost member engagement and deliver more personalised advice.
- Funds see enormous potential in AI but are initially deploying it cautiously to speed up simple processes
- Cybersecurity is the bedrock of funds’ growing digital capabilities and is crucial to protect and retain confidence in the super system.
You can read the full 2024 report here: The Future of Superannuation: How data and digital innovation are reshaping the industry.
