Speaking to InvestorDaily, legalsuper chief executive Andrew Proebstl said some funds are rushing into launching ‘trendy’ features in the belief that doing so will distinguish them from their competitors.
Mr Proebstl said features like mobile phone applications can actually be an unwarranted expense for funds because they do nothing to fulfil member needs or expectations.
“I think there’s always an element of competition for all of us, but when it comes down to it, the real test is: is it something your members actually want?” he said.
Mr Proebstl said that as a speciality fund serving a niche market, it has always been important for legalsuper to know its market well.
As a result, the fund places a large emphasis on member research, which has enabled the fund to avoid allocating money to features or services that provide no benefit to members.
Legalsuper was recently presented with the option of launching a mobile application for its members. Before deciding to go ahead, however, the fund surveyed most of its members, asking whether this was something they would find useful, and an overwhelming proportion of members said it was not something they would use.
The fund also discovered through its research that members did not require hard copy statements and would instead prefer to simply look at their statements online.
“These sorts of findings are helpful because it can save us money even though we are still doing what our members want us to do,” said Mr Proebstl.
Research conducted by the fund had also helped legalsuper to refine its advice offering, he added.
According to Mr Proebstl, while most funds were establishing financial teams and spending a considerable amount of money setting them up, legalsuper chose to conduct research of its members’ financial planning requirements first.
“The research came back telling us that we should continue doing superannuation and not get distracted doing financial planning,” he said.
“We resolved to go down another path and decided to partner with a financial planning organisation instead.”
