Growth in SMSF signals need for super industry to adapt to change

Technological and generational change is driving customer behaviour Investors demand an ‘emotional connection’ with savings

Sydney, 15 August 2012 – Bravura Solutions Limited (Bravura) said that one of the common themes that emerged from a panel of Self Managed Superannuation Funds (SMSF) experts was that technological innovation and generational change are driving growth in SMSF as more Australians seek an ‘emotional connection’ with their investments.

Bravura’s roundtable, hosted in conjunction with FST Media and called ‘Driving change through innovation in SMSF offerings’, saw many of the SMSF industry’s leading thinkers weigh in on issues including regulatory change and taxation, potential risks, innovation to attract and retain clientele, and the increasingly financially savvy investor.

Bravura’s Global Head of Product, Darren Stevens said: “There is dichotomy amongst superannuation investors right now with a segment of investors who are disengaged, but a rapidly growing segment of investors with larger account balances that want a greater level of involvement with their superannuation. This is driving change in the way the superannuation industry interacts with customers.

“For example, technological advances are already helping the next generation of retirees be more directly involved in investment decisions through SMSF and other self-directed investment vehicles,” Mr Stevens said.

“The challenge for the industry is to continue to adapt as future generations seek to be even more emotionally connected to their retirement planning. There will be a greater emphasis on meeting the need for strategic investment counsel rather than simple process-type queries such as ‘How much is in my account?’”

The average opening balance of an SMSF is $240,000, which coincides roughly with the point at which marketing has shown investors start to connect emotionally with their savings, Mr Stevens said, citing roundtable participant Andrew Bloore, CEO at SuperIQ. The average balance of SMSFs is about $1 million, with $14 billion moving out of traditional funds into SMSFs every year.

In response to growing SMSF interest, Bravura has recently launched a series of enhancements enabling users to better service this fast growing sector. Darren Speirs, Head of Portfolio Solutions (Garradin) announced the launch of a new portfolio transaction interface last week. The interface provides Garradin investment management software users with streamlined integration to BGL Simple Fund, a compliance solution for SMSFs. “The new interface significantly reduces the amount of manual data entry required by SMSF administrators, increasing efficiency, profitability and enabling better service for end user clients”, he said.

Bravura has also partnered with Class Super to integrate its Garradin investment management software directly with Class’ SMSF administration platform to enable comprehensive automated daily data feeds between the two systems. The investor data available via the feed includes information such as a portfolio’s cash transactions, share and managed fund trades, as well as income payments and expenses.

Garradin is Bravura’s comprehensive, multi-currency investment management system, which is currently deployed across multiple sectors including retail wealth management platforms (such as wraps, master trusts and managed accounts), wholesale investment management, registry and mutual funds, and custody.

To view the full roundtable transcript click here.

Bravura’s Global Head of Product, Darren Stevens was quoted in this press release. To ask Darren a question regarding the release or to discuss it in more detail, email PR@bravurasolutions.com

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