In our "Technology Differentiators in Administration Partners" blog post, we discussed what technology to look for when considering a lift-out partner for superannuation administration. We noted the advantages of a partner who owns and builds their technology and provides servicing using that technology. Simply put, the right technology—technology built and refined in conjunction with direct servicing experience—regularly gets to the market faster and with less risk. In this blog, we explore whether global scope is important for local Australian servicing, and why people matter.
Experience and Global Scope
Unquestionably, the depth of local knowledge is a criterion for choice. Experience in the Australian market and with Australian funds should be a prerequisite for any outsourced or insourced solution, whether technology only or a hybrid set of services. Local expertise and presence not only ensure an understanding of the specific nuances but also of regulation, member service expectations and the competitive forces in the market that demand a certain response. Local presence also means local management—on-the-ground leaders invested in making the business successful by delivering on client needs and expectations.
But if super funds are unique to the Australian market, is there a benefit to a provider having a significant scope of business in other markets? The answer is a resounding yes.
As vehicles for retirement savings and investments, super funds have cousins around the world that may go by different names but have similar objectives and outcomes. Many of the general member servicing requirements are the same. Even if all markets don’t evolve at the same rate or have the same regulations, changes in one market often occur in other markets. This is where global partners excel. They are at the forefront of change, with systems and technologies already in place and used in other markets that can be quickly adapted for another.
People, People, People
Experience also extends to the partner’s teams of people. The benefits of talent and experience are achieved when undergoing a lift-out process. Lift-outs are complex at best given all the existing process flows, reports and interconnected dependencies built over years of using in-house systems. Unexpected hurdles are common as functions are often managed by separate teams who might not have visibility into how the whole model has been put together. Find a partner with staff and expertise who knows how to adapt and overcome obstacles when faced with those unanticipated snags. Without the right people, experience, teams, trust and processes, implementing even the best solution can ironically lead to even greater costs, less scalability, and a host of operational and reputational risks.
Take the time for in-depth discussions to learn how a potential provider measures up on some of these important points. You’re selecting a provider for a long and important relationship, so look for someone who is committed to mutual success.
Read our "Mine Super Outsources to SS&C to Improve Costs and Deliver Continued Member Satisfaction" case study to learn more about SS&C Superannuation Administration.
