Welcome to Novigi’s Quarterly Report for Q3 FY2024, our regular update on the trends and topics that are driving our thinking on all things technology, data, and wealth management. If you’re a regular reader, welcome back. If it’s your first time, we hope you find this useful and insightful, and perhaps even just a little entertaining. So please, put your headphones in, tell your coworkers not to bug you for the next 25 minutes, and read on — 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:
Advice
With the first tranche of Quality of Advice Review (QAR) legislation tabled at parliament — albeit with some hiccups — it’s beginning to feel like the handbrake is off financial advice. It’s time the industry answered some important questions around the use of data and technology to deliver advice. How do we offer digital and hybrid advice to Australians en masse? How do we quickly and easily gather the data we need to be able to provide advice? What can we do with the rich data assets we create through the advice process?
We’ll be running a webinar to dive into these developments in more detail. Click here to find out more and register.
Operational Risk Management (CPS 230)
APRA is due to release the finalised practice guide for CPS 230 sometime in April–May. In light of that we’ve been giving some thought to what regulated entities — and third-parties like Novigi — will need to have in place by 1 July 2025. From a data and tech perspective, we think the key elements of a compliant approach centre on having an appropriate risk management information system, being able to analyse and report on data relating to operational risks, and having technology governance and process frameworks in place.
Insurance
We’ve had many a conversation over the last quarter (and the last few years) about the need for greater interoperability between insurers and their partners. It’s a tricky problem to solve, but there are significant gains to be had in quality of service, efficiency, and customer engagement. Solving it will likely involve embedding insurance in superannuation member experiences; standardising data exchange between insurers, superannuation funds, and administrators; and integrating with regulators and other government bodies.
Data Quality
Data quality is an increasingly hot topic. And yet, there seems to be a disconnect between expectations and reality.To bridge the gap between data challenges and a data-driven future, organisations need to invest in data quality. There are three pillars that underpin data quality in your organisation – governance, team engagement and tools. In this article, we examine some common data quality issues we see in industry and unpack some strategies for unpicking data quality knots.
Cyber
You don’t need to be following cyber news closely to know that there are some deep-seated problems in cyber these days. It’s feeling more and more like an asymmetric battle between cyber criminals and cyber security professionals. Unfortunately, the battle has arrived at FSI’s doorstep, but it’s a battle we can keep at bay if we work together (we’re hesitant to say “win”, for fear of being dealers of false hope). In this article, we investigate some prominent cyber security partnerships of late, and how this might inspire partnerships of your own.
AI
I know what you’re thinking: surely there’s nothing left to say about AI. Humour us though. We’ve plumbed the unfathomable depths of AI coverage and dredged up some interesting discussion about capital investment in AI and AI impacts on decision making. It’s even relevant to wealth management.
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.
For more information about anything you’ve read here, or if you have a more general inquiry, please contact us.