Johannesburg, 05 Dec 2008
Technology can be deployed to retain and educate customers in the retirement fund industry, while enabling collaboration between retirement fund administrators and other partners to deliver to the total needs of members in the different stages of their lives. That's the word from Freda du Toit, director of SDT Financial Software Solutions, who presented a paper on the benefits of technology at the 15th Annual Retirement Funds Forum held at the Hyatt Regency in Rosebank from 24 to 27 November.
"With the right technology provider, a fund administrator can reduce administration costs, increase customer service levels and customer loyalty, and ultimately use technology as a key customer retention tool," she said.
"Technology can provide new and creative ways of educating fund members and trustees, smoothing member queries and reducing administration costs."
In the highly competitive insurance industry, Du Toit noted, the key business drivers are to remain competitive, limit fees and reduce administration costs, remain profitable, and maintain high levels of customer service.
Speaking on technology as a means to reduce costs, Du Toit said back-office integration and automation reduces manual work, ensures integrated solutions between different functions, automates communication to external suppliers, and automates audits and reconciliation.
"In addition, automated service models are far more cost-effective. These include Web-based and mobile services, as well as services provided through third parties."
She added that the correct technology enables insurance companies to have a deeper relationship with their clients, giving them the ability to expand their business by cross- and up-selling.
"The benefit to consumers is that they have access to risk management, medical programmes, and financial planning all through one service provider. Add to that the fact that technology today allows you to service your customer closer to their home, in a way that they can relate to, by using the Internet, workplace intranets, mobile networks and retail systems.
“The collaborative approach services the total needs of the member, allowing them to build a trusted relationship and become the member's partner to attaining a good life."
Du Toit said insurers should select a technology partner only once they know and understand their own business. "Beware of long, expensive evaluation processes," she cautioned. "Your technology partner must actually become your business solution supplier. It's advisable to negotiate terms that align payment with successful outcomes and the growth and success of your business."
She also highlighted the importance of enterprise architecture models that allow continuous alignment of technology with strategic business goals, thus maximising return on investment.
Share