DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/3jz256/_strategic) has announced the addition of the "Strategic Insight: SMSF Hub Accounts - Choosing a cash hub" report to their offering.
The number of SMSFs and SMSF members in Australia has continued to grow, increasing to over 500,000 SMSFs in September 2013 and almost twice as many SMSF members. While the investment strategies and fund compositions of SMSFs vary, all SMSFs have one thing in common; a compulsory cash hub' account which performs as the financial center or hub' of the SMSF. It is from this account that contributions and investment income are paid into and all benefit payments and expenses for the SMSF are paid from. A cash hub account is a compulsory bank account that all SMSFs are required to take out when the fund is set up. Transaction, cash management and savings accounts are the most popular account types for SMSF cash hubs, according to the author's data, with less than 1 in 10 members using another type of account as the cash hub of their SMSF.
The main drivers of cash hub account choice are knowing and trusting the brand of the institution (31%) and easy to use internet banking (27%). However, a number of other factors also appear to play a role in provider choice, and in choice of account type. Higher value SMSFs were more likely than average to use a cash management or transaction account over a savings account, this could be due to a higher level of engagement or greater use of financial advisors among these SMSF members. SMSF members who had conducted research with a financial advisor were more likely than average to hold their SMSF cash hub account with Macquarie Bank. Account providers also have an influence on choice of hub account, with most providers offering a preferred or default account.
Features and Benefits
- Market share of SMSF cash hub account providers
- Examines factors influencing SMSF cash hub account choice
- Case study of best practice
Key Questions Answered
- Which SMSF cash hub account types are the most popular?
- What are the key drivers of SMSF cash hub account choice?
- How can institutions leverage SMSF cash hub account relationships?
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