It’s time once again for Novigi’s Quarterly Report. Looking back on Q1 FY2025, we’ve picked out the topics and trends that we think are worth talking about in wealth management, data and technology. If you think we’ve missed something or just plain got it wrong, please, let us know, we’re always keen to have a chat.
We’re back again this quarter with the usual mix of insight, analysis, bad humour, and a regulatory update on superannuation brought to you by Jonathan Steffanoni, Managing Partner at Legal & Prudential Advisors.
So please, ignore your to-do list and have a read — and as always please let us know if you have any feedback, we’d love to hear from you.
The Quarter at a Glance
Covered in this quarter’s report are:
Private Credit Where Credit’s Due
Everyone’s talking about private credit. But for all the talk, there isn’t a lot of data around. APRA and ASIC have characterised investments in private credit as opaque and flagged it for closer scrutiny. We take a look at the rise of private credit as an asset class and discuss some of the data and technology implications of its increasing prevalence.
Are Data Warehouses Dead?
The data warehouse is over 30 years old — practically ancient in technology terms. Naturally, it’s seen competition from young upstarts looking to claim its throne. Have any of these newcomers managed to kill the data warehouse? Despite challenges from data lakes, data lakehouses, data virtualisation, and data fabrics, we think the data warehouse can rest comfortable in the knowledge that it has a role in any enterprise data management solution for some time yet.
Technological Implications of Payday Super
Starting 1 July 2026, Payday Super will require employers to make super contributions within a week of each pay cycle. Treasury has outlined several changes to support the transition to Payday Super, all of which have data and technology impacts. This article explores what super funds need to consider and the options available to them in adhering to the new regulation.
IT Managed Services
Wealth management organisations — be they superannuation funds, insurers, investment managers, or financial advisers — are very special. Just ask them. As such they have specific needs when it comes to IT. We examine how two characteristics are key to providing high-quality IT managed services in the wealth management industry: baked-in compliance and operational excellence.
A(I)vant-Garde: GraphRAG
GraphRAG is gaining attention as a method for getting more out generative AI, and it’s caught our eye as well. This technology, combining graph databases with Retrieval Augmented Generation (RAG), promises to improve the accuracy and reliability of AI outputs. By using GraphRAG, wealth management organisations can offer more personalised, secure services without overhauling existing systems. As the industry continues to explore how best to use AI, GraphRAG could become a crucial part of the toolkit.
Financial Crime
Financial crime is rampant. According to our call histories, our two best friends are named “Suspected Spam” and “Potential Fraud”. In large part, data and technology got us into this mess. But there are ways data and technology can get us out of it. Screening, data analytics and data sharing should all form part of any organisation’s approach to preventing and mitigating the consequences of financial crime.
M&A
A brief update on mergers and acquisitions. During Q1 FY25, there were several transactions that were announced, progressed or concluded.
Regulatory Update: Superannuation
As mentioned, this quarter’s regulatory update is brought to you by Jonathan Steffanoni of Legal & Prudential Advisors.
This article was produced as part of The Quarterly – Q1 FY25
For more information about anything you’ve read here, or if you have a more general inquiry, please contact us.
Key Contributors:
Kevin Fernandez is General Manager, Market Strategy and Propositions at Novigi, and is based in the Melbourne office.
Sophie Bowen-James is an analyst in the Market Strategy and Propositions team at Novigi, and is based in the Sydney office.