Sargon opens door to trustee tech

Sargon has announced its full-stack trustee technology will launch as a Software as a Service (SaaS) offering for superannuation trustees in Australia and New Zealand.

The financial technology and infrastructure company said its Sargon Trustee Cloud software has previously only been available to funds which Sargon is itself the trustee and digital advice platform Decimal.

"While Sargon is currently trustee of 16% (22 of the 136) of the public offer superannuation funds in Australia, the expansion of its SaaS model to include Sargon's full product suite will mean that all superannuation funds can access Sargon's six proprietary technology products through a licensing arrangement," Sargon said.

"The Sargon Trustee Cloud delivers operating efficiencies and scale, lowers costs, reduces systemic risk and improves compliance outcomes - enabling funds to focus on their members and growth."

Sargon chief executive Phillip Kingston, said the SaaS model is a natural evolution for the company that has the potential to deliver a remarkable transformation across the entire industry.

"The operation of pension and investment funds is inherently complex, and this complexity and its associated cost only continues to grow under an increasing regulatory burden," Kingston said.

"For Australian superannuation, members' fees now exceed $30 billion per year. Improving efficiencies and reducing the operating cost of funds therefore represents a significant opportunity to the industry, ultimately delivering better outcomes for retirees."

Kingston added that over 25% of public offer superannuation funds outsource trustee operations and she believes that share is likely to grow significantly.

"We believe this continues to be the optimal solution for funds - particularly those that are under increasing pressure to merge - to create efficiencies from scale and improve outcomes for their members," he said.

"These funds can still gain many of the benefits offered by the potential scale of merging funds, such as operational excellence and improved outcomes, without exposing their members to the disruption and risks associated with integration."

The announcement comes less than a month since the company announced its expansion into fund administration through the development of an integrated administration system.

Read more: Sargon Trustee CloudPhillip Kingston
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