Client reputed wealth manager in Australia transforms their superannuation administration model in partnership with Tech Mahindra Client. The client is one of Australia’s largest wealth and investment management companies listed on ASX, offering a vast spectrum of products for personal investment, superannuation and retirement planning client with over A$30 billion in funds under management.*
In its constant endeavour to continue enhancing its personalised digital programs and services to help clients achieve their investment goals, Client underwent the implementation of core technology project in 2007. However, the company now wanted to step up the game and looked forward to optimize operations and costs keeping superior customer experience at the centre of every new step they implement.
Identification of Need & Choosing the “Right” Partners
In line with the vision of increasing customer engagement, enhancing experience and optimizing costs and operations, Client figured the need to replace not only the entire core system but also to change the administration model which was inhouse operating on the legacy technology.
In pursuing an outsourcing strategy, Client looked for a partner who had the capability and experience to work with them through this major system transformation and back office administration without losing sight of what they were trying to achieve for its clients.
Choosing the right technology solution
After an extensive process, Client entered into a managed service agreement with Tech Mahindra in late 2013, to transform its core registry platform and create a foundation to deliver next generation customer experience.
The scope of implementation broadly involved two aspects: Platform & Back end and the premise for was as follows:
“Provide an end to end platform for managing superannuation (retirement) funds, pension funds, retail investment funds and trust funds and provide end to end back office fund administration services”
Tech Mahindra choose Bravura Solution’s Sonata as the core registry of choice for the future state.
The platform scope included: Core Registry platform for setting up fund structures and customer accounts, track money coming in and going out, track units assigned, investment strategy etc, Case Management to record requests coming in, assign to teams, do quality assurance and report on SLAs, Client communication software, Reporting mechanisms etc.
The back office scope included: Investor / member on-boarding after performing KYC and AML checks as per product and regulatory needs, Process incoming contributions, withdrawals, benefits, manage switches in investment strategies, reconciliations, employer servicing, interactions with custodians, operational risk & compliance
Besides providing the platform and BPO, TechM was also responsible for keeping the platform compliant to regulation in superannuation and investments industry in Australia
Implementing the Solution
The transformation project involved two-phases:
- Transition of service (BPO) - Three core services were transitioned: Business processing (administration), IT application management, and development and testing.
- Transformation of Registry (IT outsourcing) – Client business was migrated from their current IT environment into Tech Mahindra’s new registry system environment and the new operating model
Measuring the Results & Business Value Addition
Client was able to achieve remarkable improvements in its operations within the first two years after go-live, the most noteworthy being the improvement in processing speed, optimisation of processes, reduced risk, reduced error rates and lower technology costs.
There were further benefits attributed to the concept of straight through processing leading to significant improvement in response times and reduction in error rates.
With Tech Mahindra skilfully harnessing the capabilities of Sonata, following are some of the measurable value additions:
- Over 30% cost reduction in resourcing achieved in less than 2 years
- Error rates reduced to less than <0.1% on the exception processing
- Consistently achieved 80% of calls being answered within 20 seconds due to faster access to data systems
- Above 98% of transactions now processed within 3 days or less, compared to 80% pre-transition.
Backed by next generation technology, Client could now better respond to increasing digital demand and deliver best-of-breed engagement and customer experiences made possible via user friendly portals that allowed Client’s customers to access information and transact easily anywhere, anytime, on their device of choice.