Lets take a decade by decade look…

Data evolution has been driven by technological advancements, regulatory demands and the need for improved fact paced decision-making and real time member engagement.

There are so many systems nowadays like NeoXam, Goldensource, Fencore, Finbourne, ICS, Eagle/BNY, Matrix/Rimes, MarkitEDM, State Street Alpha and Factset all of which have unique offerings and all vying for your business – but how did we get to this point of evolution with such sophisticated product platforms in our industry?

As the industry has grown, data platforms have evolved from basic systems handling static data to complex, real-time, and cloud-based platforms capable of processing vast amounts of information.

This transformation has enabled superannuation funds and investment managers to make more informed decisions, optimise operations and enhance member services.

Let’s jump in and take a look at the journey through the ages……

1. Early Data Platforms (Pre-2000s): Basic Record-Keeping and Compliance

Data platforms in the superannuation and investment industry in the early days were relatively simple. They were primarily designed to meet regulatory compliance needs, such as tracking contributions and maintaining member account balances. These systems were limited in scope and functionality and the data was often siloed with little integration across different functions and different systems.

They were basic database systems for tracking member accounts, contributions and withdrawals. They were simple reporting tools and required manual data input and processing and limited ability to provide  real-time insights or analytics.

2. Introduction of ERP and Financial Software (2000s-2010): Integration and Automation

As superannuation funds grew larger and the investment landscape became more complex, the industry began to adopt enterprise resource planning (ERP) systems and specialised financial software. These platforms introduced greater levels of integration across team functions, helping to automate back-office operations and provide more accurate financial reporting.

These systems allowed better integration of member data, investments, and accounting and data warehouses began to emerge, enabling the storage of large volumes of historical data for more comprehensive analysis. The start of automating routine tasks (payroll, fund administration and regulatory reporting).

Challenge was that data remained largely batch-processed with limited real-time capabilities however integration improved

3. Shift to Data Analytics and BI (2010-2015): Data-Driven Decision-Making

With increased industry competition and an increased focus on investment performance and member engagement, superannuation funds began to adopt more advanced data analytics and business intelligence tools. The ability to generate actionable insights from data became a strategic priority.

This era saw the introduction of data analytics and business intelligence (BI) platforms for portfolio management, risk assessment, and performance analysis. Data visualisation tools emerged and advancements in data reporting occurred for reg compliance, risk management and member comms.

Issue is that platforms were still predominantly on-prem making scalability and flexibility difficult.

4. Advent of Cloud-Based Platforms and Big Data (2015-2020): Scalability and Flexibility

The adoption of cloud-based platforms and the ability to process big data marked a significant turning point in the superannuation and investment industry. Advancements in cloud technology allowed funds to scale their data storage and processing capabilities, while also providing flexibility in managing both structured and unstructured data.

Cloud allowed the reduction of on-prem data centre costs and big data technologies enabled funds to process vast amounts of information quickly.

Data integration became more seamless and we saw the growth of advanced analytics, machine learning and AI to automate portfolio management and optimise investment decisions.

There were still issues around data security and privacy and the migration of legacy systems to cloud platforms required significant investment

5. Real-Time Data and AI-Driven Platforms (2020-2024): Innovation and Predictive Insights

The most recent phase of data platform evolution has been driven by AI, machine learning, and real-time data processing. These technologies are enabling superannuation funds and investment managers to make faster more informed decisions and offer personalised services to members.

With the reduction in many superfunds and investment firms due to either acquisitions or mergers, and also the increased use of SMSF, means that funds are required to produce more significant returns for members.

AI and machine learning algorithms are used to predict market trends, optimise portfolios and automate risk, which as an SMSF member, you probably don’t have access to.

Real-time data platforms provide instant insights into portfolio performance, market conditions and member behaviour.

Personalisation at scale: Funds can now offer tailored advice and investment options to members based on their unique circumstances, powered by data analytics and AI.

ESG integration: Data platforms are also being used to assess environmental, social, and governance (ESG) factors, allowing funds to meet growing demand for sustainable investment options.

Regulatory compliance still remains a challenge as funds must ensure they adhere to evolving rules on data privacy and financial transparency. Business also need to ensuring that AI and machine learning models remain ethical.

What the future Trends in Data Platforms will look like: Decentralisation, Blockchain, and Enhanced Automation

Looking ahead, the superannuation and investment industry is likely to see further evolution in data platforms, driven by emerging technologies such as blockchain, decentralised finance (DeFi), and enhanced automation.

Technology advancements and the adoption of funds to utilise the best platforms fit for member purpose, transparency, reg compliance and security are going to be an interesting road ahead.

Kapital Consulting is a niche Fintech Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting