To stay competitive, many superannuation funds are choosing to either outsource their registry platform and servicing operations, or reevaluate their already outsourced administration service provider’s technology and services. As funds modernize their operations, they face obstacles like disparate legacy systems, high expectations from members, and a complicated web of regulations.
There is no time to waste in deciding how to address these challenges. Technology innovation is accelerating, with artificial intelligence (AI), data analytics, machine learning and robotic process automation (RPA) becoming the norm. While those newer technologies can often be implemented quickly, replacing a registry platform can make the overall project costly and time-consuming. Implementation can take years, and there is a shortage of IT talent—conditions that can make modernization feel out of reach for many funds.
There are three main paths a fund can take to modernization.
- The option with the highest upfront investment is to do everything in-house.
- Merging or partnering with another provider that has already modernized also has high integration and implementation costs, but will benefit from scale as the years go on.
- Outsourcing offers the lowest upfront investment and fastest timeline. A fund might consider some key questions to help choose the path forward:
- What are our competencies and the value we provide?
- Are our technology capabilities keeping pace with end clients’ expectations?
- Are we spending money wisely?
- What’s our risk?
- Can we attract and retain the right talent to run a modern, competitive operational platform in-house?
- Can we maintain or grow margins in our current environment?
Nearly 300 firms globally have selected SS&C Retirement Solutions as an administration provider. With industry-leading technology, a zero back office digital operating model and personalized member experiences, our flexible business model enables selective outsourcing allows you to choose which services to maintain in-house and which to outsource.
Download our “Superannuation funds registry and servicing: Is outsourcing the answer?” brochure to learn more about how to decide if outsourcing is right for you.
