DST Bluedoor executive director Martin Spedding was commenting on Australian Bureau of Statistics (ABS) data released yesterday that found the seasonally adjusted private software spend rose 1.6 per cent to $3.07 billion in the third quarter of 2013, from $3.02 billion in the second quarter – and jumped 8.1 per cent from the year prior.
Meanwhile, employers paid a record $15.57 billion into employees’ superannuation accounts in the same period, reflecting the rise in the superannuation guarantee to 9.25 per cent.
The growth in superannuation savings would force wealth and asset managers to become more efficient, as they seek to keep up with greater regulation and rapid technological changes, said Mr Spedding.
“The nation’s superannuation savings pool is rapidly rising in value, and we can expect it to reach $2 trillion in 2014, from $1.75 billion in the September quarter this year, driven by growing compulsory superannuation contributions and rising asset values,” Mr Spedding said.
“This is forcing superannuation funds, wealth managers and administrators to upgrade their technology solutions to seek efficiencies and automate manual processes.”
The ABS report indicated the IT spend has hit record levels for several quarters.
“Over the past year we’ve seen a rise in technology spend by superannuation funds and other financial service organisations, and we expect this trend to continue,” said Mr Spedding.
“Indeed, financial services organisations are making solid productivity gains, unlike many other sectors of the Australian economy where productivity has fallen.
“Greater regulation of the superannuation sector through SuperStream regulation and APRA data reporting is only adding to the pressure on superannuation funds to upgrade their technology systems and become more efficient.”
