SMSF businesses reluctant to adopt automation and technology will struggle to remain competitive and "die a very slow death", according to The SMSF Academy’s Aaron Dunn.
Speaking to SMSF Adviser, Mr Dunn said using technology to improve efficiency and drive down costs is going to become increasingly important in coming years with SMSFs now attracting a younger demographic.
“The ATO statistics show around four in every 10 SMSF trustees are now under the age of 45,” said Mr Dunn.
“Pricing points will be a relatively important consideration for some of these younger trustees who are maybe starting with balances of less than what is the ordinarily the ASIC prescribed circa $200,000 amount.”
Mr Dunn said ‘laggards’ or slow adopters may be planning to rely on their relationships with clients.
“If their service is not priced competitively, [however], then there’s going to be some level of strain on the relationship,” he said.
While there is a lot of discussion in the SMSF industry about how automation and technology may drive down prices in certain activities such as compliance, Mr Dunn said technology is also going to enable practitioners to better understand what type of trustee demographic sit within their client base.
He said it will also help them understand what areas or clients they may want to target in the future, enabling them to access a “whole range of opportunities going forward in terms of what their value proposition is”.
Mr Dunn said there are certainly some pressures that the industry will confront with the big technology shift that’s happening in the industry.
“I think there are some real positives [though]; those who use it properly will better understand their clients into the future, and the type of clients they want and that will obviously leverage growth when properly utilised going forward,” he said.
In terms of the uptake of technology, Mr Dunn said he has already seen a difference between the administration providers versus general practitioners operating locally.
“The uptake of technology is far more prevalent amongst [the] SMSF administration community than amongst general practitioners,” he said.
“A lot of the resistance around security and so forth is starting to disappear; people are becoming more comfortable and a lot of the collaborative benefits are starting to come to the fore as well as the efficiencies that can improve workflow.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all