In New Zealand, KiwiSaver is entering a new phase of growth.
With nearly 3.4 million members and approximately $123 billion invested across 38 schemes and 400+ individual funds, KiwiSaver has become one of the country's largest pools of invested capital.
At 19 years old, it is only getting started. Compounding returns, growing participation, and policy changes could see KiwiSaver assets exceed $250 billion by 2030 and approach $500 billion or more during the following decade.
This growth is positive for members and New Zealand's long-term savings pool. It also raises a question for the industry: will the operating models that supported KiwiSaver at $20 billion remain suitable when assets reach hundreds of billions of dollars?
KiwiSaver as a case study
KiwiSaver is one example of a broader shift in wealth management. As digital investment platforms reduce barriers to entry and financial literacy becomes more widely taught, participation in long-term investing could increase across investment products and channels.
For fund managers, administrators, and technology providers, the challenge is supporting greater volumes while maintaining the service, compliance, and member experiences people expect.
Operational efficiency, investor engagement, asset allocation, and customer journeys all have a role to play in attracting and retaining members. As funds grow, administration and regulatory requirements also increase.
Technology is central to meeting these demands. Traditionally, administration platforms aimed to own every part of the technology stack. Registry, infrastructure, cybersecurity, workflow, data management, digital experiences, and systems integration all sat within one environment.
That model made sense when technology changed more slowly. Today, many of these areas require highly focused expertise, particularly as artificial intelligence (“AI”) creates new possibilities for administration and service delivery. This creates a practical question: can one provider deliver every capability to the standard required?
Innovation without rebuilding everything
A modular approach offers another way forward. In a traditional platform, adding new capability can require lengthy development within the core administration system. A more connected model allows fund managers, administrators, and technology partners to contribute their own areas of expertise.
Specialist technology providers can develop and improve their products, allowing administrators to adopt established capabilities rather than build every solution internally. This could include AI, workflow automation, data quality tools, or digital experiences. Each specialist focuses on its area of expertise, while the wider platform brings those capabilities together.
This approach can also reduce duplication. Rather than every administrator solving the same technical problems independently, specialist partners can develop capabilities that serve multiple clients and environments. The result is a platform that can add new capabilities without requiring every component to be built from scratch.
Better member experiences
Most of this work is invisible to members, as it should be. People judge their fund by how easily they can update their details, access information, or receive support. They don’t need to know how many systems sit behind those interactions or whether every capability comes from the administrator itself. They want a service that works.
Better system communication can reduce the need to repeat information. Higher-quality data can reduce processing errors. Automated workflows can help services respond more quickly. The technology behind the experience matters because it shapes how easily members can interact with their retirement savings.
Building for the next decade
The Apex-Novigi partnership has delivered outcomes across Australia for many years. Its expansion into New Zealand through the Mercer administration integration comes at a significant point for the local retirement savings industry.
KiwiSaver is growing in size and sophistication. As assets increase and member engagement develops, the administration and technology supporting the system will need to support that scale.
The operating models that served the industry at $20 billion or $50 billion may not be the same models needed when assets reach hundreds of billions of dollars. Meeting that demand will require a combination of specialist administration capability, technology, data, and digital expertise.
The strongest platforms may therefore be those that bring together the right capabilities, rather than attempting to build every component within one company. For KiwiSaver, that approach could help create an administration model that can support the industry's growth over the next decade.
