More super funds are adopting electronic payment systems as consumer control becomes a priority, a Fund Executives Association briefing has been told.
Currently around 45 superannuation funds have incorporated the ‘Bpay’ system into their back-office administration – approximately 40 per cent of the members of the Fund Executives Association Ltd (FEAL) – with the number of payments received doubling in the past 12 months. Speaking at a FEAL luncheon yesterday, Andrew Arnott, general manager at Bpay, said that as people were becoming more actively involved in their superannuation, the sense of control they felt they were exerting over their financial transactions was becoming more important. “The idea that super is simply forced saving is starting to change and it is beginning to be seen as a valuable long-term investment,” he said. “People want to have more direct involvement, and take control of things like varying or adding to their voluntary contributions.” Electronic payment also offers the benefits of convenience, security, and cost and time saving that has seen systems such as Bpay become widespread in the banking and financial services industries, Arnott said. The event was sponsored by Fidelity Investments Australia.
The brunt of losses from the LA wildfires are expected to be borne by primary insurers and high-risk reinsurance programs, but super funds are nevertheless closely monitoring the possible impact of the fires on catastrophe bond and insurance-linked securities exposures.
Simon HoyleJanuary 17, 2025
