Industry superannuation funds say consumers do not make rational choices, and banks should not be allowed to bid for workers’ futures.

The big banks are lobbying to scrap the selection process for default superannuation funds, which allocates a fund to anyone who does not make a choice.

But the banks want to remove the Fair Work Commission from the process and include all low-fee My Super products in the default pool.

Currently, there is $1.87 trillion in superannuation assets, while total assets in My Super sit at $378 billion.

A recent report from independent research firm SuperRatings showed that industry super funds have outperformed retail funds for the past 10 years.

Industry Super Australia says three separate reviews into superannuation - the 2010 Cooper review, 2012 Productivity Commission inquiry and David Murray's 2014 Financial System Inquiry - support the current selection process.

Industry Super’s report argues that there is a new consensus in economic circles that consumers rarely behave rationally when deciding on financial products, due to a high level of confusion, choices and procrastination.

Figures show that less than 3 per cent of customers have switched funds since Choice of Fund legislation was introduced in 2005.

But the Financial Services Council says there should be nothing to fear

“Industry funds have nothing to fear from competition if their performance is as good as they claim,” said FSC chief executive Sally Loan.