Digital transformation is an opportunity knocking at the door of South Africa’s retirement industry. Long challenged by low member engagement, this sector is facing powerful new possibilities as digitisation unlocks the potential to streamline operations, connect directly with members, and engage with them like never before. 

At stake is more than efficiency. As Old Mutual Corporate’s Keri-lee Edmond puts it: “Digitisation is not just about technology; it is about creating opportunities to reach more members, especially those in underserved communities, in new ways. It is about improving retirement outcomes for all.” 

A break from the past

For Old Mutual Corporate, navigating the shifts of a post-Covid society and the introduction of the two-pot retirement system crystallised opportunities to reach members through new avenues, and highlighted the importance of collaborating with different stakeholders to leverage these opportunities. 

In the past, retirement communication was largely paper-based, tethered to the traditional employer-member relationship with physical documents. Engagement was minimal, and communication was a tick-box exercise with members interacting with their benefits only during annual statement reviews. Letters were stapled to payslips, relying on staff for distribution in the hope that members would eventually read them. Financial education was often limited to in-person engagements, and attendance and scale proved to be a challenge.

The last few years have seen a fundamental shift. In 2024, empowered by WhatsApp’s accessibility, Old Mutual enabled digital two-pot claim submissions via the messaging app. Of South Africa’s 26 million social media users, 94% use WhatsApp, according to 2025 Meltwater statistics. 

“WhatsApp is an accessible, familiar tool across income levels,” says Lourens Joubert, Head of Digital Enablement at Old Mutual Corporate and part of the team working towards creating an inclusive and engaged retirement system through digital transformation. “Old Mutual built a claims portal inside the platform and trained our branches and call centres to help members complete the process themselves, rather than doing it for them,” explains Joubert.

To help members access their savings pots, a digital campaign enabled them to update their details and access their money. As a result, WhatsApp usage grew from around 60 000 active users at the start of 2024 to almost 300 000 members as of June 2025, with this figure still rising.

“We are now shifting from relying on employers to connecting directly with members, thanks to digital tools that enable real-time engagement,” Joubert says. 

But the efficiency of digitised claims is only part of the story. What stands out is that Old Mutual enabled real, measurable interaction with members in a meaningful, impactful way. “A few years ago, we reached maybe tens of thousands of members a year through face-to-face education,” says Edmond. “This year, at the halfway mark alone, we had already reached hundreds of thousands of members in the comfort of their own pockets, with digital recordings of financial webinars, educational content, and timely member communication sent via cellphone. People don’t mind using digital technology, as long as it works and they know how to use it.” 

Data quality as a foundation

The dramatic increase in WhatsApp engagement may have coincided with the introduction of the two-pot system, but success was not a matter of chance. It took foresight and the groundwork of data enrichment and member engagement to give Old Mutual the leverage it needed to push the boundaries. Preparing for digital claims and WhatsApp communication took about 18 months, with Joubert’s team collaborating with teams across the business.

“We pushed through. We cleaned the data. We checked with Home Affairs and fixed IDs, names, and genders. If you go digital, your dirty laundry gets aired – and that laundry is your data quality,” explains Joubert. 

The success of this effort is proof that accurate and complete member data is the cornerstone of tailored retirement solutions. However, the process required to achieve improved outcomes through digitisation demonstrates the importance of collaboration among all stakeholders. “The cost of digital can be high. It requires appropriate systems, infrastructure, processes, data, and people,” says Edmond.

Leveraging data analytics for better decision making

The effort may be substantial, but the outcomes are transformational. Digital tools allow funds to break away from a past weighed down by cumbersome processes. They enable funds to educate, inform, and connect with individuals who were once out of reach, opening the door to smarter, more inclusive retirement planning.

With quality data, analytics is unleashed, providing insights for trustees, employers, administrators, and consultants to more accurately track, measure, and personalise outcomes and communication, boost member engagement, and identify underserved communities – all at scale. “Predictive analytics allows a more proactive, rather than reactive, approach for our decision makers and members, informing innovative fund design, good member choices, positive behaviour, and efficient service delivery. It allows us to understand members better and develop solutions that truly meet their needs,” says Edmond. 

With data and analytics in place, AI applications present the next step in the evolution. While AI is still in its nascent stages in the retirement industry, it is brimming with potential. Besides automating processes, it enables bespoke services based on actual member data points. “Humans are already showing strong tendencies to connect with AI in empathetic ways, and the possibilities of using these advanced technologies to scale services and experiences previously provided only by another human, are tremendous,” says Edmond.

Edmond emphasises that harnessing the digital dividend is not about going digital for the first time. “What’s different is the shift in scale, in responsiveness, and in how intentionally we’re designing for members.” 

The digital dividend means delivering real, measurable value to everyone, especially the people who need it most. It is about what members experience when technology makes retirement simpler, clearer, and more accessible. “It is what happens when a member, whether in a city or on a farm, can update their details via WhatsApp; when a young employee changing jobs receives a personalised message that helps them preserve their savings; or when a retiring member can access the answers to all their questions with ease. It is when someone who once felt excluded begins to see themselves in the system,” Edmond explains. 

Building trust

However, while digital technologies may be the car on the road of this evolution, humans are in the driver’s seat. The human qualities of trust, authenticity, and collaboration will ensure its impact. “AI ethics should be a matter of public interest,” says Edmond. “These models need to be properly understood, trained and monitored,” she explains. For decades, the retirement industry has traded on trust and human connection. The introduction of automated tasks, AI and data insights may reduce the mundane human labour in those processes, but what is emerging is an opportunity to build trust in new ways. 

Joubert believes that trust starts by delivering on your promises to your members, and those deliverables can be automated to an extent. But it is the human connection that deepens that trust. “People build the brand,” he explains. “Ultimately, it is about whether or not members can trust us as humans, and whether or not we can provide them information and resolve their issues,” he says. “Automation can be used to free up client-facing employees,” he adds, so they can focus their time and energy on building relationships, supporting members, and driving better outcomes. 

Similarly, trust is developed through demonstration, says Edmond. “People didn’t ask for Uber; they were happy to continue using their respective modes of transport. But when the technology delivered and transportation needs were fulfilled in new ways, trust was built. People didn’t ask for digitisation, so if we put it in place, we, as industry leaders, must demonstrate that it works and adds value for members.”

However, the challenges can’t be ignored. “We must balance innovation with responsible data stewardship,” says Joubert. “Navigating the regulatory landscape and ensuring compliance is crucial. Being a trusted brand and assuring customers that the information they are sharing will not be compromised is a level of trust that must be built over time. We are actively working on this.”

Reaching underserved communities

The power of digitisation as a bridge to underserved communities is an opportunity Edmond is particularly excited about. “South Africa’s retirement system continues to reflect deep disparities in coverage, savings levels, and financial literacy,” she says. “Many members lack the means to save adequately and access clear, consistent information and advice that can help them make informed decisions.”

Large segments of the workforce, especially in lower-income and rural communities, have a limited understanding of the long-term consequences of contribution choices, preservation decisions, and annuity selection. “This knowledge gap is a key driver of poor outcomes over time,” explains Edmond. Digital channels offer the opportunity to scale education, advice, and support, and are a powerful way to close this gap. 

“It is essential to recognise that these technologies are designed to enhance, not replace, human-centred service. Our qualified consultants, counsellors, advisers, and intermediaries remain central to the member experience, now enabled by digital tools that extend their reach, efficiency, and impact.”

“The vision is to build an inclusive system that empowers every member, regardless of geography or income. We see digital transformation not just as an efficiency measure, but as a cornerstone of broader retirement inclusion,” says Edmond. 

Collaboration and regulatory support

Technology alone will not bring about real transformation. Collaboration and investment across the industry will be required to build a digital ecosystem that truly serves our citizens.

Too often, institutions aim for a “single view of the client”, but only within their own data, says Edmond. Instead, we need a “single view of the South African” – one that is accurate, consolidated and central, and enables seamless, member-first services across platforms, providers, and systems. “The digital dividend is not about efficiency for its own sake; it is about equity, access, and empowerment.

“We should all aim to keep the member interest at the centre of these innovations,” says Edmond. “When we do that, the dividend is more than digital; it is human. It is better outcomes, deeper engagement, and a retirement system that works a little better for all.”

Business leaders and policymakers have crucial roles: business leaders must proactively adopt digital tools to enhance connectivity and engagement, and policymakers and regulators should support initiatives that boost national savings. “Regulatory support for auto-enrolment and data consolidation will be crucial for realising the full potential of digitisation,” Joubert says.

More than just passing trends, digitisation and data analytics are transformative forces reshaping and radically enhancing financial futures. By working together, business leaders, fund managers, and policymakers can create a more equitable, efficient, and future-proof system. The opportunity is clear: harness the digital dividend to build an inclusive, intelligent, and truly member-focused retirement system

 *This article originally appeared in the Old Mutual Mindspace Thought Leaders Forum special issue. To read more, click here.