QMV Super Solutions look at the ten biggest challenges that super funds will face in the coming years and how super trustees should approach them.

1. TOP TEN
CHALLENGES
for
the
Superannuation
Industry
beyond
2013.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

2. SUPERSMARTS
What
challenges
lie
ahead
in
the
coming
decades
that
savvy
super
fund
Trustees
should
be
planning
for?
We’re
glad
you
asked…
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com
By
QMV.

3. supervision
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com
Data
Excellence
Public
Policy
Data
Migration
The
Cloud
Member
Engagement
Exception
Management
Market
Globalisation
Big
Data
Account
Consolidation
Rethinking
Retirement
Top
10
Challenges
beyond
2013

4. 1.data excellence
As
custodians
of
an
enormous
(AND
growing)
amount
of
data,
Trustees
should
be
implemen?ng
sound
data
government
prac?ces
to
achieve
excellence
in
managing
data
quality
and
security.
Those
who
do,
will
be
able
to
use
predic?ve
analy?cs
to
make
beTer
informed
decisions
&
to
empower
member
engagement
&
retainment.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com
Sound
Data
Governance.

5. 2.public policy
Understand
The
Shifts
Age
distribu?on
demographics
are
changing
in
Australia…
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com
The
number
of
people
aged
65+
will
rise
from
13%
in
2006
to
25%
in
2056.
The
number
of
working
age
popula?on
will
decrease
from
67%
in
2006
to
58%
in
2056.
Public
policy
will
have
to
respond
by
restructuring
the
super
industry.
But
how?

6. 2.public policy
Understand
The
Shifts
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com
Funds
need
to
carefully
consider
the
impact
of
these
public
policy
shi_s
when
planning
for
growth
&
efficiency.

7. 3.data migration
Information
Transitioning
Economic
efficiencies
&
industry
consolida?on
will
combine
to
effect
a
reduc?on
of
the
number
of
super
funds.
The
funds
that
will
survive
will
have
the
best
quality
&
most
efficient
data
migra?on
systems,
that
can
easily
migrate
complex
data
from
a
variety
of
placorms.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

8. Why?
Cloud-­‐based
data
opera?ons
allows
funds
to
save
on
fixed
costs
associated
with
in-­‐house
technical
infrastructure
opera?ons.
Cloud
service
providers
also
lend
their
exper?se
to
efficiently
manage
data
security.
Savvy
funds
will
be
capitalising
on
the
opportuni?es,
as
well
as
managing
associated
poten?al
risks
rela?ng
to
privacy
&
security
of
data.
4.the cloud
Centralising
Infrastructure
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

9. 5.Member engagement
Strategic
Segmentation
Super
funds
should
be
focusing
member
engagement
strategies
towards
a
par?cular
segment
to
ensure
products
are
developed
with
a
clearly
defined
target
market
in
mind...
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

10. 5.member engagement
Strategic
Segmenta,on
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com
Member
engagement
is
now
more
meaningful
than
the
tradi?onal
categorisa?on
of
retail,
industry
or
corporate.
A
highly
engaged
member
will
demand
feature
rich
products
that
result
in
higher
costs.
Engaged
members
will
drive
demand
for
managed
accounts
that
offer
more
flexibility
A
disengaged
member
will
be
largely
serviced
by
MySuper
products.
Lost
members
will
be
managed
by
the
ATO.

11. 6.exceptionmanagement
A
New
Model
Super
Funds
must
move
away
from
data
entry
&
transac?on
processing
and
embrace
an
excep?on
management
focused
opera?onal
model
to
reduce
costs
and
increase
accuracy.
Decision
makers
will
need
to
consider
whether
to
invest
in
proprietary
technology
or
to
develop
bespoke
technology
in-­‐house.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

12. 7.globalmarket
The
Next
Stage
of
Growth
The
domes?c
super
product
market
will
reach
maturity
at
some
stage
between
2035
and
2045,
and
growth
will
slow.
Long
term
strategies
for
expansion
of
markets
beyond
Australia’s
shores
will
be
a
prudent
measure
for
superannua?on
funds
as
the
domes?c
market
matures.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

13. 8.big data
Filtering
Out
The
Noise
The
amount
of
informa?on
available
both
to
fund
trustees
and
to
members
is
exploding.
Super
funds
must
develop
systems
which
customise
the
flow
of
informa?on
to
employees
and
members.
This
will
enable
managers
to
make
informed
commercial
decisions
&
allow
members
to
choose
how
they
want
to
engage
with
the
fund.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

14. 9.accountconsolidation
Contracting
Number
of
Accounts
The
number
of
superannua?on
accounts
is
set
to
contract
in
the
short
term,
with
the
mandated
consolida?on
and
lost
member
regula?ons
coming
into
effect.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

15. 9.accountconsolidation
Contracting
Number
of
Accounts
Funds
should:
1. Implement
systems
&
procedures
to
facilitate
&
execute
the
consolida?on
of
member
accounts
2. Renego?ate
service
agreements
or
licences
where
revenue
is
?ed
to
the
number
of
accounts
they
hold,
transi?oning
towards
asset
based
or
hybrid
service
agreements
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

16. 10.rethinkretirement
Transition
to
Retirement.
Increasingly,
re?rement
is
becoming
more
of
a
transi?on
period
rather
than
a
sudden
&
absolute
date
in
a
member’s
life.
Funds
should
consider
developing
income
stream
products
which
integrate
banking
services
with
income
stream
products
to
accommodate
the
shi_.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

17. how to respond?
The
immediate
concerns
with
implemen?ng
StrongerSuper
reforms
are
undoubtedly
important.
But
those
who
move
first
in
thinking
about
what
comes
next
in
5,
10
or
20
years
are
going
to
be
the
ones
that
prosper
deep
into
the
21st
century.
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com

18. want more?
Contact
QMV
to
find
out
how
we
can
help
you
turn
these
challenges
into
opportuni?es.
Marisa
Paoli
Head
of
Business
Services
mpaoli@qmvsolu?ons.com
/
9620
0707
Level
4,
10-­‐16
Queen
St,
Melbourne,
VIC
3000
www.qmvsupersolu?ons.com