Super fund members being hijacked?
Web-based comparison sites and highly-targeted television advertising campaigns by law firms and others are serving to undermine the relationship superannuation funds have traditionally maintained with their members.
That is one of the central findings of a discussion amongst key superannuation fund executives conducted by Money Management's sister publication, Super Review, with participants warning that member relations may already have been hijacked.
Association of Superannuation Funds of Australia chief executive, Pauline Vamos, pointed to the problem saying that when members searched the internet for information about their superannuation fund, they might very well receive information about another fund or offering.
"….web-based providers who help people compare funds, compare performance, compare insurance, put together the league tables, are going to not only eat research houses' lunch but they are going to really take over that communication," she said.
At least two superannuation fund chief executives attending the discussion expressed similar concern, but also pointed to the manner in which some lawyers and other service providers were utilising television advertising to convince members to pursue particular issues.
ClubPlus chief executive, Paul Cahill said that his fund had raised the issue of advertising by lawyers with the regulators, but had failed to get a result.
NGS Super chief executive, Anthony Rodwell-Ball said it was a manifestation of a highly competitive but largely immature market.
"It's an immature market; in my view, there are far too many suppliers in it and this is the sort of thing we're going to get until it's a mature market," he said.
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