IOOF has acquired a minority stake in digital superannuation fund Grow Super.
IOOF and Grow Super have entered into a “strategic partnership” that will see IOOF make use of Grow's technology to engage with a younger demographic, according to a statement.
"IOOF is investing heavily in updating its corporate super digital assets to make them more visual and intuitive as part of a plan appeal to Millennials, who now outnumber Baby Boomers and Generation X," IOOF Group general manager Renato Mota told InvestorDaily.
He said Grow's understanding of the value chain was "superior to other fintechs" and indicated to a range of possibilities for IOOF to explore using Grow's technology.
"Grow has built a capability for engaging with younger people and, through the strategic relationship, IOOF and Grow will work together to use Grow's proprietary technology to appeal to younger corporate super fund members."
“We believe this is entirely aligned with our focus on financial advice and look forward to exploring this space together.”
Grow Super chief executive Josh Wilson added, “Having a leader in the advice industry like IOOF partner with Grow Super is a testament to what we have created in the past 12 months and we’re really excited about being able to work together to help empower Australians to better superannuation and ultimately life outcomes.”