Superannuation funds are in the process of collecting “unprecedented” amounts of member data that will be used to create hyper-personalised services, says Bravura.
In a new report titled Super Megatrends, Bravura superannuation product manager Scott Kendall said big data and predictive analytics are becoming essential tools for super funds that are looking to retain members.
A better understanding of member data can also improve the risk management and compliance processes of the big superannuation funds, Mr Kendall said.
“Modern technology platforms are facilitating the collection of unprecedented amounts of member data, enabling detailed member profiling in an eﬀort to deliver hyper-personalised service oﬀerings,” he said.
Super funds are employing techniques such as behaviour modelling to identify members who are at risk of leaving the fund, Mr Kendall said – and scenario stress testing can help funds better manager investment risk.
“As their use of big data becomes more sophisticated, all kinds of businesses are drawing upon information from other external data sources, such as social media and data aggregators, to gain an even more intimate knowledge of their customers,” he said.
Mr Kendall pointed to Mercer’s Harmonise platform in the UK, which provides an aggregated view of members’ finances through their employer.
“Participating funds have access to far greater amounts of member information than ever before and the additional data captured via this loop can be applied to deliver more meaningful, hyper-personalised services to their members,” he said.
Super funds will also start investigating artificial intelligence services such as ‘cognitive computing’, Mr Kendall predicted.
“Various insurers are already employing the services of IBM Watson to process large amounts of data to achieve better underwriting, fraud detection and credit control,” he said.
“It’s only a matter of time before super funds follow suit.”