Insignia agrees to SS&C deal to transform Master Trust
Insignia Financial has entered into an initial agreement with fund administrator SS&C Technologies to transform its Master Trust business.
This will see SS&C provide administration and technology services for the business which Insignia hopes will simplify and transform the business and result in an improved customer experience, having conducted a detailed review.
A final binding agreement is expected to be completed during the first quarter of 2025 following joint discovery, planning and approvals. If this proceeds, Insignia expects to subcontract a range of functions to SS&C while it will continue to provide servicing and administration, including claims and complaints.
At the firm’s Investor Day last month, it stated four priorities for the Master Trust business where it sees the biggest opportunity for growth across the firm.
It also recently appointed Dave Woodall from Australian Retirement Trust, where he was the chief commercial officer, to lead the business as part of its new executive leadership structure. Woodall will have end-to-end accountability for Insignia Financial’s Master Trust business, and will be responsible for product strategy, management and development, client operations, workplace solutions, sales and insurance.
The priorities are:
- Simplifying our proposition by leveraging our size into meaningful scale benefits for members and reducing our cost to serve.
- Growing our Workplace offering by being the provider of choice for Australian employers.
- Building a digital direct-to-consumer acquisition channel harnessing and growing MLC’s consumer brand awareness.
- Develop and deliver innovative products to drive improved outcomes for customers to and through retirement.
Insignia Financial’s CEO Scott Hartley said: “This is an exciting announcement for our people, customers and shareholders, and the next step in our vision to become Australia’s leading and most efficient wealth management company by 2030.
“As I’ve said before, in our Master Trust business we have size but not scale. This arrangement will help us convert our size into meaningful scale benefits for our more than 1 million members over the next few years through lower cost-to-serve, competitive fees for members, and industry leading service outcomes. Members will benefit from an enhanced experience delivered by contemporary technology.
“By transitioning Insignia Financial’s employees to SS&C, our members will have continuity of service, operations and product knowledge.”
Bill Stone, SS&C chairman and chief executive, said: “We are pleased to partner with Insignia Financial in this transformative collaboration. As a leading global fund administrator, our goal is to enable our customers to reach their business objectives at scale. We look forward to working with the team to deliver superior outcomes for Insignia Financial’s members and bring significant cost savings and efficiency to their Master Trust business.
“As a result of this partnership, we will also acquire significant capabilities and a talented team of operations, technology and delivery people who can help us achieve our ambition to become the leading super fund administrator in Australia.”
AUTHOR
Laura Dew
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