UniSuper's digital upgrade reflects super sector evolution
UniSuper, Australia’s fourth-largest retirement fund, has transformed its approach managing its A$139 billion ($89 billion) portfolio and offerings of member services through an ambitious digital transformation programme.
"We continue to develop and evolve our use of data in managing portfolios," a spokesperson for the superannuation fund told AsianInvestor. “One example is in being able to gain a more granular understanding of our exposures and our risks at both a fund level and a portfolio level.”
The spokesperson further noted: "In some cases this may lead us to adjust relative exposures as part of our risk management."
Superannuation funds with advanced data capabilities demonstrate 23% higher portfolio optimisation rates and significantly improved risk management outcomes, according to a recent JP Morgan report entitled “The Future of Superannuation.”
A broader shift has been observed in Australia’s $2.6 trillion pension industry. The JP Morgan research showed that 85% of funds now rank digital capability enhancement as their top operational priority.
The report identified rising portfolio complexity and evolving member expectations as key drivers, with 72% of funds planning to increase their technology investment over the next two years.
“We continue to build on our capability bringing specialist skills into our team as needed,” said the spokesperson.
Beyond portfolio management, UniSuper has set ambitious targets for its digital service delivery.
UniSuper
"We have been enabling greater digitalisation and straight-through processing across the fund to improve the experience for our members," said Siva Sivakumaran, Chief of Staff at UniSuper.
Funds with advanced digital capabilities, according to JP Morgan, reported 40% higher member satisfaction scores and 35% lower operational costs.
UniSuper aims to resolve 80% of member interactions through immediate digital channels, reflecting a commitment to making technological enhancements.
"This is important from a member experience perspective because we want to resolve member interaction with us immediately. This is a key component of our member servicing strategy," Sivakumaran said.
RISING COMPETITION
Recent legislation requiring members to remain with their existing super fund when changing jobs, a process known as “stapling,” has intensified competition among funds.
AustralianSuper and Aware Super have both launched digital transformation programs focused on straight-through processing, while HESTA reported a 45% improvement in processing times through automation.
"We're moving into a much more competitive environment with stapling and choice being introduced – we need to fight for every member we get and retain them," Sivakumaran said.
The Australian superannuation sector's digital transformation accelerated following the pandemic, which caused a 156% increase in digital engagement across the industry, according to JP Morgan's research.
"Funds with a less standardised approach and a lack of straight-through-processing were more vulnerable," Nick Paparo, head of securities services sales at JP Morgan, noted in the report.
The integration of data and operational systems has become crucial for funds managing complex portfolios, added Jane Dauparas, JP Morgan APAC head of product development for securities services.
"Asset owners seek platforms that integrate data seamlessly while ensuring consistent operations," said Dauparas.