November 15, 2017 05:00 AM
Australia – one of the key markets helping to drive the global transition towards open banking and greater diversity in the financial services industry – has witnessed some exciting developments in recent years.
One of the most notable trends has been the growth of the fintech market, which is creating more choice for consumers and genuine competition for established banks.
According to the 2017 FinTech Australia Census, businesses in this sector have experienced a 200 percent annual median increase in revenue compared to 2016.
The research was based on a survey of 166 firms, around a quarter (24 percent) of which reported revenue growth of more than 700 percent. The trend of increasing revenue was particularly notable among businesses less than three years old.
More than half (54 percent) of Australian fintechs cited global growth as a priority for the coming year, up from 38 percent in the 2016 census.
The UK emerged as the top focus for overseas expansion, with 49 percent of respondents identifying it as a target market, followed by Singapore (40 percent), the US (38 percent), New Zealand (27 percent), Hong Kong (22 percent) and Canada (22 percent).
Simon Cant, chair of FinTech Australia, welcomed the signs that emerging businesses are “making strong inroads into the traditional financial services sector”.
He also stressed, however, that fresh efforts are required to ensure that the fintech market continues to blossom.
“There is a vast amount of work we need to continue to undertake to remove some of the barriers to our industry’s growth,” said Mr Cant. “This includes growing and diversifying our talent pool and driving ongoing policy and regulatory reforms.”
Australia is one of many global markets taking action to support diversity and competition growth in financial services. The Monetary Authority of Singapore is currently hosting the Singapore FinTech Festival, which aims to encourage connections and collaboration in the fintech community.