Trustee firm expands into fund administration

A trustee services and financial technology provider is continuing its rapid growth trajectory, unveiling plans for a full stack superannuation administration service to launch in early 2020.

Sargon is expanding its offering, with plans to launch a comprehensive administration solution for the superannuation and funds management sectors next year.

The aim of the solution is to replace the existing expensive and cumbersome systems and remove the middlemen, Sargon said.

A tender process is currently underway to find a preferred member administration services partner, Sargon said.

Sargon chief executive Phillip Kingston said the move illustrates the firm's mission to remove inefficiencies from super and bring the industry into the 21st century.

"While Australia's superannuation system is a great success story, its annual cost base is well in excess of $30 billion," Kingston said.

"A significant portion of these costs arise from fund administration which should be straight-through automated processes supported by capable and efficient customer service and member administration staff."

Administration in Australia is far too manual and more expensive than in many other nations, he added.

According to Sargon, the system will "seamlessly integrate super funds with key industry participants, enabling the reliable and secure movement of data and money using globally recognised standards and a fully scalable, cloud-hosted service."

Kingston said many current systems are nothing more than a facade - outdated systems patched over with the appearance of modernity.

"Conversely, Sargon's system is built from the ground up, unburdened by legacy issues and leveraging scalable technology enablers such as cloud computing and industry standard gateways," he said.

Also commenting, Sargon vice president of product Tom Merrett said: "The addition of fund administration services will continue to build out Sargon's 'full stack' technology solution for our clients, from front to back, including government integrations, custody, administration, robo advice, investment, and member registry - all the way up to APIs that can transform the member experience."

The move follows news last week ASIC commenced legal action against Sargon's Tidswell Financial Services as trustee of MobiSuper.

Read more: SargonPhillip KingstonMobiSuperTidswell Financial ServicesTom Merrett
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