Online retailer Kogan to launch ultra-low-fee super product
Here's why competing digital super funds like Spaceship and Raiz Super should be very concerned about Kogan's new product, Kogan Super.
Here's why competing digital super funds like Spaceship and Raiz Super should be very concerned about Kogan's new product, Kogan Super.Online retailer Kogan, well-known for offering competitively priced tech products and gadgets, has today announced it will launch a new super fund called Kogan Super in early 2019. The new fund will be launched together with superannuation and investment firm Mercer and promises to be one of Australia's cheapest, no-frill super options.
We've seen a number of new digital super funds pop up over the past year, including Spaceship, Raiz Super, GROW Super and most-recently Zuper. All these funds are using technology and impressive apps to shake-up the traditionally stale super industry and entice younger Australians to switch. The ever-growing $2.7 trillion superannuation market is certainly big enough for all these players to take a slice, but the news of Kogan's new super product will likely make competing digital players a bit nervous, and rightly so.
Kogan already has some fairly major competitive advantages over its competitors, one being its customers. Kogan boasts an impressive customer base of more than 1.45 million active users already and has proven it can quickly and easily operate at scale across its digital platform.
CEO and managing director at Mercer said Kogan's existing brand was already trusted by a huge number of Australians. "In an industry where scale and cost efficiencies count, this new alliance will enable Kogan to create value at scale through their trusted online brand and huge customer base."
The finer details of the new super product will be released closer to its launch in early 2019, but Kogan's executive director David Shafer has promised the fund will be extremely low in fees. "This partnership will deliver a no frills superannuation offering with ultra-low fees that will enable Aussies to retain and preserve more of their personal wealth. Kogan.com's mission is to deliver price leadership through digital efficiency, and we are proud to be able to help Australians preserve more of their hard-earned money by delivering an ultra-low fee superannuation solution."
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