A technology solution that provides flexibility to help meet the diverse needs of retirees
Promoted by DST Systems
DST’s retirement platform provides superannuation funds and life insurers with a flexible technology platform to leverage the growing post-retirement opportunity.
“The financial services industry is under increasing pressure to provide much more choice and innovation in supporting the needs of the growing number of retirees,” said Sam Higgie, Director of Product Management at DST. “Today, according to the Australian Bureau of Statistics, more than 15 per cent of the population is aged 65 and over, and that number is growing. This represents an enormous opportunity for the industry, in particular superannuation funds and life insurers.
“So far, the industry has been pretty slow to respond, and in part that’s because members’ financial needs in retirement are a lot more complex than in the accumulation phase. We believe that in order to leverage the retirement opportunity, super funds need to be able to: configure and deliver a wide range of post-retirement products; provide an experience that helps members make the right decisions for their retirement; and they need to integrate with partners, such as life insurers and even aged care providers, to be able to offer a holistic retirement solution.”
A flexible retirement solution
DST’s retirement solution enables superannuation funds and life insurers to better capitalise on the growing retirement market, without having to change their existing systems.
DST’s retirement solution is essentially a record-keeping platform and rules engine that can stand alone or integrate with existing platforms to enable fully automated, straight-through transaction processing.
The platform is highly configurable. It supports a wide range of transition-to-retirement and post-retirement products that are available on the market today – from the standard account-based pensions through to separately managed accounts and lifetime and capital protected products.
For customers, it provides the ability to create tailored retirement solutions, including how and when fees, payments and contributions are paid.
The DST advantage
“The real advantage our retirement solution offers is the potential to get flexible, tailored retirement products into market faster because you don’t have to configure existing platforms for new products.
“Our platform can be configured to administer complex products with multiple components, for example the ability to draw a lump sum and pay a defined income in the one product. It can also be configured for pre-retirement products, allowing funds to combine and package solutions across a member’s lifetime.”
Years of experience
DST has a wealth of experience in the retirement market. In the UK, the company processes around 60 per cent of the market’s pension funds through its BPO. In Australia, the retirement platform already supports a number of clients’ across the retail wealth and industry funds markets.
"Without data, it simply won’t work": Q&A with Jim Murphy, CEO DST Australia
- You moved from the US to take on this role for DST in Australia. What was it about the company and the role that attracted you?
I have known, followed, and worked with DST Systems dating back to the 1990s and respect and admire the impact the company has had on the financial services industry since its inception almost 50 years ago.
A key part of my role is overseeing the ongoing development and growth of the company’s wealth management platform. This platform is the engine that underpins a very important and significant global growth area for DST. Being a part of this next chapter in this company’s history appeals to me and aligns to experience I bring to the role.
- You’ve spent the bulk of your career in the US financial services industry, in organisations like State Street, JP Morgan and Fidelity. What are the key similarities and differences between the US and Australian financial services markets?
I see more similarities than differences. Income adequacy, changing demographics, and regulation are dominant topics, challenges, and opportunities across both markets.
One of the common challenges across both markets has been getting consumers to understand and take greater accountability for their retirement savings. Under-insurance is also an issue and one that cuts to the heart of protecting people’s financial wellbeing.
The other is the focus on digital transformation as a means of enabling financial services companies to provide more sophisticated and personalised customer experiences, as well as drive efficiencies across the entire value chain. Globally, the industry is telling us that digital transformation is one of their top priorities, yet I don’t think there are many organisations that have fully leveraged the potential of digital technologies to create sustainable competitive advantage.