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How super should be using technology: KPMG

KPMG has detailed the opportunities and challenges ahead for the super system when it comes to their digital offerings, suggesting funds look to global best practice for inspiration.

Super funds have sought after emerging technology solutions to capitalise on elevated levels of member engagement according to a KPMG report.

The report says, members have expressed a preference to engage on digital channels and emerging technologies have enabled savvy funds to produce better efficiencies, enhance member engagement and gain a competitive edge in a low-cost way.

Demonstrably, the world's largest retirement fund, Japan's Government Pension Investment Fund has commissioned a study into Artificial Intelligence's capacity to select assets and choose investment managers.

Domestically, Australian members have recently been afforded highly personalised offerings driven by data analytics, such as virtual chat assistants powered by machine learning.

While uptake of advanced technology solutions is evident, KPMG reasons that an early assessment and mitigation of privacy risk is key.

"Funds are well advised to take measures to align technology solutions with members' expectations of strong privacy protections in digital services," KPMG said.

To do so, KPMG proposes funds should adopt a Privacy by Design approach and conduct Privacy Impact Assessments at the design states of technology solutions.

Further, KPMG added: "Funds should provide adequate notice to and, where relevant, obtain consent from members noting that the use of a technology solution may require disclosure to third parties, and the creation of new information by a technology solution would amount to collection."

More pointedly, the consultancy firm stipulates funds should self-assess whether members are notified when technology solutions may be used to collect their information and notified about how the information is used. Supplementarily, funds should evaluate what circumstances require express consent and implied consent from members.

With regards to data, KPMG said funds should take reasonable steps to ensure that personal information that is collected is accurate, up to date and complete.

According to the consultancy firm, reasonable steps to address the risk to data quality posed by emerging technology solutions include a failover plan to ensure business continuity in instances where results are inaccurate or comprised of unintentionally derived personal information.

Per the report, funds should also have policies and processes for handling the overcollection of unnecessary and possibly unsolicited information. Additionally, funds should have processes for ensuring that data relied on by any technology solution is up to date.

Read more: KPMGEmerging technologySuperannuationArtificial IntelligenceGovernment Pension Investment FundJacinta MunroKelly HenneyShubham SinghalCaitlin Galpin