As the importance of superannuation to Australians and the broader economy grows, so does the need for efficient, resilient and scalable systems and technology.
By Jeff Hall, Head of APAC, GBST
Over the past few years, super funds have stepped up their focus and investment in technology, however, capital investment remains relatively small, particularly given the increasing needs and expectations of members.
Many processes are still paper-heavy, with the majority of funds requiring members to complete and mail forms to withdraw and rollover funds, switch investment options and lodge insurance claims.
The archaic practices inside many funds have gone under the radar for decades but time is running out for funds to fix their tech.
Superannuation members today are on average wealthier, better educated and more financially literate than ever before. This shift is reshaping expectations across the industry. No longer passive participants, members are more engaged and increasingly active in managing their retirement savings. They are seeking transparency, digital ease and greater control over their retirement outcomes. These expectations are reshaping the strategic and operational priorities of the entire industry.
As a result, members are significantly impacted and miffed by outages, disruptions and poor service. When members lose access to their super account, whether due to platform outages, switching delays, or system issues, it can create very real financial and emotional impacts.
In the last 12-18 months, details of administration errors, system failures and cyber threats inside some of Australia’s largest funds have grabbed the attention of regulators and the press.
The spotlight on these issues will only intensify as balances swell and more baby boomers and Gen Xer’s inch closer to retirement.
This dynamic is placing significant pressure on all super funds to regularly reassess whether their technology providers can deliver the reliability, scalability, and member experience that is now expected.
Practically, technology has the ability to increase functionality, improve speed and efficiency, and reduce errors.
Strategically, it has the power to help funds boost member satisfaction, create a competitive advantage, and scale for future growth.
Growth is a key objective of every organisation, profit or not, and it is the pursuit of growth that shapes strategy and activity.
The combination of strategy, problems and risk management often drives large-scale transformation programs and, at the heart of most transformation programs, is significant investment in systems, processes and technology.
When organisations launch transformation programs, they set goals and objectives from the outset and vow to deliver on time and on budget, yet so many programs suffer from delays, problems and cost blowouts.
Since inception, GBST has assisted many clients to successfully execute transformation programs and achieve their stated goals and objectives.
We’ve learned that when it comes to developing and executing transformation programs, organisations must be crystal clear about the problems they are trying to solve and their strategic priorities.
They need to know their limitations and be realistic about what’s possible, given their budget, capacity and timeframe.
Some of the biggest problems facing super funds include:
- Rising regulatory complexity & compliance burden: Increasing scrutiny from APRA/ASIC, CPS 230, YFYS, ESG, data and governance requirements.
- Cybersecurity threats & fraud exposure: Escalating attacks on member data, identity theft, and scam-related account switching.
- Operational inefficiency & legacy systems: Ageing technology, fragmented workflows, and high cost-to-serve impacting service and resilience.
- Liquidity & valuation challenges from private markets: High exposure to illiquid assets creating valuation, switching, and liquidity management risk.
- Retirement income pressures & shifting member expectations: Need for sustainable decumulation solutions, personalisation, better digital engagement, and guidance.
- Advice & Platform Competition: Advice-led platforms are gaining share, while concerns persist about unlicensed operators and inappropriate high-fee schemes.
Investment returns aren’t enough
Transformational change should be on the agenda of every fund, as members demand more than just investment returns and competition heats up.
There is no doubt that embarking on transformational change is risky if not executed well but not embarking on transformational change is arguably riskier, given the rising expectations of members, their increasing willingness to switch, and mounting regulatory and public scrutiny on the super sector.
Industry leaders should be encouraged and supported to pursue transformational change to improve service levels and member services, better manage risks and drive growth.
When it comes to overhauling legacy systems, replacing vendors and upgrading tech, the recent experience of some funds should not deter others from pursuing improvements. It simply highlights the importance of extensive planning, thorough due diligence and choosing the right partners, ensuring member outcomes remain at the heart of every decision.
Jeff Hall is GBST’s Head of APAC, managing client activity and driving ongoing regional growth across the group’s solutions. This article first appeared in FS Super on 10/04/2026. You can read it here.
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