The proportion of those intending to switch in the future has also increased, the study found. Those who switched opted for “the new generation of retail funds”, which include BT Super for Life, ANZ Smart Choice and CBA Essential Super.
Direct-to-consumer funds attracted 12 per cent of those who switched and appealed to a younger demographic, with half of those who chose direct-to-consumer aged under 30 years, according to Investment Trends.
“Existing banking relationships are, overwhelmingly, the strongest driver of the direct to consumer growth, and some banks have been very successful at using their retail banking channel to grow a base for younger members,” said Investment Trends analyst Irene Guiamatsia.
“If they become ‘customers for life’, like transactional banking customers have been, then these funds could transform the Australian superannuation space quite radically in the next few decades.”
At the same time, the study found that member satisfaction had declined slightly in three areas.
Overall satisfaction ratings dropped industry-wide when it came to “helping members feel confident about the future”, “direction on what to do next” and “advice offering”, according to the report.
“Members are asking the manager of their retirement funds to provide direction and reassurance about their individual situation. Our research also shows that when super funds are able to engage their members’ interest, they are more satisfied and also more confident about the future, and there lies opportunity,” Ms Guiamatsia said.
It is noted that the a client becomes ‘customers for life’, the issue of products per customer needs to be looked at by whom ???
The issue was flogged in the late 1990’s by US Banks, as Presidents objectives were getting products per customer from 2.48 to 2.80.
A Debit account, credit account, mortgage, personal loan, Mutual Fund, and 401K, Personal Insurance, House Insurance, Child Insurance means lots of revenue in the form of fees to the holdings company.
A reddy source of cheap money to be loaned out to the mortgage market was ING Direct product, now used by all banks, in the form of a high interest internet account.
RAMS used Macquarie Bank in the late 1990’s to get funding. The issue of buying mortgage originators and ROI needs to be explained, by a Wizard. lol.
Well Graham, the “so called best deal with the ISN” is not the best deal at all. It is a misleading and deceptive advertising/PR campaign designed to provide more financial support and political power to the unions. The majority of Australians may not love banks, but they absolutely hate unions.
When faced with a banks vs unions choice for super, it often comes down to which is least worse. Quite similar to our current choice options for Prime Minister actually.
Interesting that in the current compliance environment where we are under increasing scrutiny from the regulator Re: switching, that so many are choosing to move away form the so called best deal with the ISN.
I shall watch with interest to see how the regulator deals with this foray by the Banks.