We define the Australian FinTech sector as comprising three market segments: digital payments, personal and business finance, financial infrastructure and data analysis. Each segment’s unique method of disrupting the financial services sector relies on its own digital technologies. This report focuses on the way these segments will grow by 2020 and the challenges that FinTech companies will face.
Australian FinTech is in the development stage of the business cycle, and the FinTech start-up space has grown rapidly and is set to drive $10 billion of revenue away from existing financial institutions and ensure $3 billion worth of added revenue.
Innovation hubs provide a strong foundation for start-ups to operate and reach positive cash flow. A$438 million of investment in Australian FinTech in 2015 was concentrated in Sydney.
Some disruptors have been observed in the growing Australian FinTech market. New EFTPOS and online charging solutions will allow more merchants to be paid through credit cards but also drive down the cost of receiving payments. The replacement of financial advice teams with Robo-Advice teams will be hugely attractive to established financial institutions that want to cut labour costs. Blockchain will radically reduce costs by decentralising ledgers for financial settlements.
Market revenue in this report only includes revenues of those companies that disrupt the existing financial sector. FinTech companies included in this report use technologies that fundamentally challenge existing financial institutions.
The base year for analysis is 2015 and the forecast period is 2016 to 2020. Revenue is provided given in US dollars when pertaining to the global FinTech sector and in Australian Dollars when pertaining to the Australian FinTech sector.
Key Questions This Study Will Answer
1. What is the state of the Australian financial sector?
2. What are the global and Asia-Pacific FinTech trends?
3. What are the digital payment trends and cryptocurrencies in use, in Australia?
4. How are algo-banking, blockchain, and FinTech data analysis poised to change the face of Australian FinTech?
5. What does FinTech mean for ICT market participants?
We determine that the FinTech disrupters in the Australian FinTech sector are predominantly emerging, with a few companies already worthy of immediate acquisition or several companies on the cusp of significant growth or game-changing innovation. We believe that the response by the Australian banks to FinTech is only an emerging strategy. Most Australian banks have not declared whether their model of responding to the FinTech market is to grow partnerships or innovate internally.