Financial technology and infrastructure company, Sargon, today announces that its full stack trustee technology solution – the Sargon Trustee Cloud – will launch as a Software as a Service (SaaS) offering for superannuation trustees in Australia and KiwiSaver supervisors in New Zealand in early 2020.
Sargon’s next-generation trustee cloud has previously only been available to funds for which Sargon is a trustee, with the exception of its digital advice platform, Decimal.
While Sargon is currently trustee of 16% (22 of the 136) of the public offer superannuation funds in Australia, the expansion of its SaaS model to include Sargon’s full product suite will mean that all superannuation funds can access Sargon’s six proprietary technology products through a licensing arrangement.
The Sargon Trustee Cloud delivers operating efficiencies and scale, lowers costs, reduces systemic risk and improves compliance outcomes – enabling funds to focus on their members and growth.
Sargon Chief Executive Officer, Phillip Kingston, described the SaaS model as a natural evolution for the company that has the potential to deliver a remarkable transformation across the entire industry.
“The operation of pension and investment funds is inherently complex, and this complexity and its associated cost only continues to grow under an increasing regulatory burden,” Kingston said.
“For Australian superannuation, members’ fees now exceed $30 billion per year. Improving efficiencies and reducing the operating cost of funds therefore represents a significant opportunity to the industry, ultimately delivering better outcomes for retirees.
“Over 25% of public offer superannuation funds already outsource trustee operations, and this share is likely to grow significantly. We believe this continues to be the optimal solution for funds – particularly those that are under increasing pressure to merge – to create efficiencies from scale and improve outcomes for their members.
“Instead of merging, funds can implement Sargon’s SaaS model to significantly reduce operating costs and ensure best-in-class compliance, while also maintaining their existing governance structures, fund identity and values, and industry representation.
“These funds can still gain many of the benefits offered by the potential scale of merging funds, such as operational excellence and improved outcomes, without exposing their members to the disruption and risks associated with integration.”
Sargon’s Chief Technology Officer, Daniel Wirjoprawiro, highlighted the extensive range of technology solutions on offer in the Sargon Trustee Cloud.
“From a modern collaborative workspace that efficiently manages your fund, to data centric operations; streamlined payment processes; an enterprise platform for digital advice and investor engagement; simplified and automated fund disclosure management; and proactive monitoring and compliance powered by machine learning, the Sargon Trustee Cloud offers a range of technology solutions that can transform the way pension and investment funds operate,” Wirjoprawiro said.
“We are excited to now offer our technology infrastructure as a service across the industry. We look forward to helping more funds transition from outdated, costly and inefficient systems and manual processes to industry leading, technology driven practices that deliver better outcomes for members.”
Today’s announcement comes less than a month since the company announced its expansion into fund administration through the development of an integrated administration system.
Along with Afterpay and Zip Co, Sargon received a top three Leadership Award recognising established innovative companies with a strong growth track record in the 2019 Deloitte Technology Fast 50 Awards on 20 November 2019, in addition to a Technology Fast Female Award.