The electronic superannuation rollover system IFF Rollovers Hub is aiming to extend the timeframe applied to its pilot program in order to attract more funds to become users of the facility.
“What we’ve found is the lead time from first discussions to going online is quite long and it’s not because the integration process is extremely difficult, it’s because their thought process is part of a much larger evolution that they are undertaking,” Sunsuper general manager Francis Cox said.
“So typically they would be looking at all of the aspects of e-commerce … and that requires a fair degree of re-engineering for most organisations,” he said.
Once more superannuation funds sign up to the program, Fox said he expects critical mass to be achieved which will allow the program to progress to another level.
“With every fund that comes on board it becomes a more attractive proposition for all of the rest because it will account for a higher and higher component of their rollover traffic,” Fox said.
The Sunsuper general manager expected this critical mass level to be achieved within the next six months.
“At that point I do think everybody will want to get on board because we will no longer be convincing people to break new ground, it will be more about funds being concerned over missing out on the administration savings others are getting that could lead to a competitive disadvantage,” Fox said.
