The True Cost of the Modern Registry Platform
By Lisa O’Reilly on Tuesday, August 23rd, 2016
It is sometimes difficult to understand the drivers or the need for change when considering a new superannuation registry platform. Whatever the strategic reason, non-engagement of key stakeholders will impact the quality of the decision.
There are three main components that need to be considered to assess the true cost of a modern registry platform:
Firstly, the technology stack. What is required to turn the system on? Do you need to run enterprise editions (i.e. Oracle, Microsoft SQL etc.)? Other key check list items at this stage relate to assessing how back-up, DR and cloud or thin client capabilities rate. It is also important to measure system performance and scalability against the number of users that will access the system (i.e. call centre, digital, administration staff etc.)
Let’s call this Cost A.
Secondly, how does the functionality stack up for the products you are looking to run on the platform? You definitely want a single client view across multiple products, seamless integration with third party technologies and a truly open approach. Right up there should be web services that allow you to execute your digital strategy, actively use member engagement tools or financial planning software. One of the greatest cost savings and advantages to purchasing an application as opposed to building your own is the constant legislative change and demand for new features or functionality.
Let’s call this Cost B.
Finally, how many operational resources will you need to run your book of business on your selected platform? This includes reviewing the number of straight-through processes, whether the system is designed around exception based processing, and how people navigate through the system. A checklist should also address contact centre staff accessing the system, single screen customisation and performance. Does system performance reduce if regular updates, fee runs or annual reviews are running on the system? It’s good to know.
Let’s call this Cost C.
The three components (Cost A + Cost B + Cost C) when added will give you the true cost of running a new registry platform.
What you will need to pay is another consideration. We live in an enterprise world that now allows us to compare previous costs and likely future costs say over a five year time horizon and weigh up the options of owning or leasing a platform. Subscription services are now available here at Financial Synergy for our Acurity platform and this shifts the bottom line from capex to opex. Win win we think.