Smithink director David Smith said some of the major SMSF administrators are increasingly looking at the role of big data, particularly following the introduction of the $1.6 million transfer balance cap, which could enable SMSF firms to offer further value to their clients.
“If you look at the big admin providers, they’ve got all of these SMSFs sitting in one big data base, and so then their ability to mine that data base and have a look at how SMSFs are performing, or what SMSFs have potential issues in them that need to be reviewed and addressed, are all ways that accounting firms can add more value to their clients and increase their efficiency,” said Mr Smith.
"With the recent $1.6 million transfer cap, some of the SMSF administration platforms are already developing ways for accounting firms to be able to identify those SMSFs with more than $1.6 million sitting in a pension account that need to be reviewed," he said.
“These administration platforms can very easily help these accounting firms and the SMSF administrators identify which funds need to be quickly addressed,” he noted.
“So over time, I think we’ll see a number of these platforms building more and more big data analysis of these funds to enable the administrators to do their job more efficiently.”
Mr Smith said some of the functions that this big data analysis will perform in the future will include identifying issues with funds and providing insights into the performance of SMSFs in order to help clients manage their fund more effectively.