The group revealed how the coronavirus pandemic had affected it in an operational update to investors on Thursday.
Link reported, as at 5 April, it had processed payments totalling $3.65 billion for the early super release measure, for 500,000 members.
The early access scheme is expected to affect its retirement and superannuation solutions business, with increased call centre volumes and member activity, as well as increased work around facilitating the scheme.
Link anticipates an immediate decrease in fund members as a result of the early withdrawals, but it has expected the scheme will also affect industry growth in the long-term, saying the rate of new accounts will also slow as employment growth and workforce mobility are lowered.
Further, it has predicted there will be a rise of fund merger activity in an increasingly complex regulatory and operating environment.
Link had previously withdrawn its guidance for financial year 2020, as a result of market volatility.
In the new update, the group noted it would be affected by the delay of the MTAA and Tasplan merger to March next year, alongside the Protecting Your Super member sweep, originally scheduled for April, being moved to October.
Revenues in the fund solutions segment have fluctuated with the movement in asset prices through the volatile period and as new funds had delayed launches.
The group reported business hours had been extended in areas of high demand, such as Link Advice.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
