Fintech to add A$1billion to Australian Economy

Saranga Sudarshan

Saranga Sudarshan

Growth strategy consulting firm Frost & Sullivan are forecasting substantial fintech growth in Australia. An affluent 18-34 demographic in particular is driving consumer demand for fintech products.

Whilst Australian client satisfaction is high, it shows most satisfaction is with smaller banks rather than the «Big Four». The fintech sector is therefore well poised to take advantage of the more personalised and innovative financial solutions preferred by customers in the current financial sector.

In 2015 the total market size of the Australian fintech sector was estimated at A$247.2m. Frost & Sullivan anticipates sharp growth in the fintech market in both 2016 and 2017, followed by steady increases through to 2020.

The latest study forecasts that the Australian fintech sector will grow at a compound annual growth rate (CAGR) of 76.36 percent and reach A$4.2 billion by 2020. A$1 billion of that will be completely new added value to the Australian economy.

Fintech Accepted

«Growing consumer confidence and popularity of new fintech products will see steady revenue growth in digital payments. In personal and business Finance, the share of revenue to mobile oriented personal finance solutions will expand as consumers become more comfortable with peer-to-peer lending, micro-investing and mobile based book-keeping,» said Saranga Sudarshan, Research Analyst, ICT Practice, Frost & Sullivan Australia & New Zealand.

In 2015 investments in the Australian Fintech market totalled A$438 million and was concentrated in innovation hubs in Sydney; in particular, the Tyro Fintech Hub and the Stone and Chalk Fintech Hub.

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