Online advice an opportunity for KiwiSaver: SuperRatings

Few KiwiSaver providers are offering online advice, research firm SuperRatings has found.

Wednesday, June 19th 2019, 6:00AM

Last year, 83% of schemes provided formal education material.

But SuperRatings' research showed, when class advice was delivered by KiwiSaver providers to clients, it was usually in person.

SuperRatings said the Australian experience had shown using a range of channels, including videos and webinars, improved outcomes, but New Zealand providers were focused on a smaller number of channels.

Almost 90% said they delivered their class advice through external client visits, and the same number did so in person in their offices.

Just over 80% said they offered class advice over the phone but only 39% over the internet.

“We believe this is a continued opportunity for many schemes, as it can be made available when other traditional channels are closed,” SuperRatings said.

SuperRatings said 83% of schemes provided class advice on contributions, which should make them well positioned to engage with members about the new contribution options.

“Whilst the scope of this opportunity will vary between providers, it demonstrates the need for providers to tailor their offerings to key cohorts to ensure member outcomes are improved over time. SuperRatings remains supportive of well-structured and efficiently operated outbound call teams, which can support greater engagement at key milestones. Our research indicates 83% of schemes maintain an outbound call team, with these focussing on education, welcome calls and retention.

"In a market where membership growth is slowing, while member expectations continue to rise, the need for providers to demonstrate the value for money of their offerings is greater than ever. Optimising Net Benefit to members, which considers returns less all recurring fees, coupled with well-rounded engagement and education programs, will ensure that member outcomes are improved over time.

"In light of a continuously evolving regulatory landscape, we encourage schemes to closely monitor the outcomes they are delivering to their members through engagement strategies"

Tags: KiwiSaver SuperRatings