This year is a busy one when you consider everything from world events to the impact of digital disruption. We experience a leap year, an Olympic Games, NASA touches down in Jupiter and private spaceplanes will be launched for the first time. In the financial services sector we also not only will face continued innovation and disruptive changes, but it is becoming clearer that as participants we need to have an opinion on how prepared we need to be – change will come and how you respond to that change is crucial.
Here is what I believe will influence our thinking in the year ahead:
- The New Payments Platform (NPP) [insert link to earlier blog post from Ron] will continue to make its presence felt, with a pressure wave of change in both approach and thinking about payments. The realisation of the breadth of its influence will hit home.
- As the time to respond, act and process for superfund members decreases, so too does the tolerance in superfund systems to deal with cyber security risks, as things move faster, we may come to know a lot more of what we don’t know!
- Will I really talk to Siri about my superannuation? May be not, but the rise of more integrated personal assistance technologies (leading on from robo advice) may increase in line with our acceptance of Artificial Intelligence helpers.
- What is old is new again. SMS as one of the most direct and trusted communication channels to customers may be looked at with a new frame of possibilities.
- The digital paradox may be a stronger factor in our thinking – the strategy of retaining superfund members by improving customer intimacy and experience – helping them be informed and more active in their wealth choices, may lead to greater churn. We need to be prepared to develop customer advocacy strategies to support retention.
- Finally cost, and in particular the quest for reduced costs! Cost pressures continue to ripple through the Australian financial services industry and superannuation and wealth are not immune. New players who will disrupt traditional markets will look for opportunities in changes to regulation, industry awards and a dynamic product landscape.
- Further to the cost pressure, we think this will drive them to review and optimise their digital investments, drive higher performance from service suppliers, seek process efficiency and place greater focus on project value.
Notwithstanding all of the above…the team at IQ is looking forward to a great year, and from all of us, I would like to wish all our clients and colleagues a safe and prosperous 2016!