Australian Fintech, Forecast for 2020

Australian FinTech revenue will grow at a CAGR of 76.3% and exceed A$4 billion by 2020, driven by reduced taxes on investments in startups, steady increase in mobile payments, and rise of Tech-savy digital natives. The Australian Fintech Sector generated A$247.2 million in 2015. Sharp growth in the Fintech market in 2016 and 2017, followed by steady increases through to 2020, is likely spur growth. Frost and Sullivan defines 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? Frost & Sullivan determines 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. Frost & Sullivan believes 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.
Published: 27 Dec 2016

  • FinTech: Business Cycle, Global, 2015
  • FinTech: Investments, Australia, 2015
  • FinTech: Mobile Payments Market, Australia, 2008–2020
  • FinTech: Wealth Management Technology, Australia, 2015
  • FinTech: Centalised Ledger System, Australia, 2015
  • FinTech: Decentalised Ledger System, Australia, 2015
  • FinTech: F&S GI Quadrant, FinTech Disruptors Australia, 2015
  • FinTech: F&S PI Quadrant, Banking Strategy, Australia, 2015
  • FinTech: Financial Service Disruption Roadmap, Australia, 1980–2020
  • FinTech: Market Share of Big Four Banks vs Other Banks, Australia, 2005–2015
  • FinTech: Big Four Banks Profitability, Australia, 2004–2015
  • FinTech: Westpac Investments, Australia, 2015
  • FinTech: CBA Innovations, Australia, 2015
  • Global FinTech Investment Activity
  • Global Investment into Venture Capital Funded FinTech Startups
  • FinTech: M&A Activity, Global, 2011–2014
  • M&A Activity 2014 and 2015
  • FinTech: Growth Dispersion, Global, 2015
  • FinTech: Local APAC Investments, Australia, 2010–2015
  • FinTech: Innovation Hubs, APAC, 2015
  • FinTech: Company Profiles Snapshot, APAC, 2015
  • FinTech: Revenue Share, Australia, 2015
  • FinTech: Revenues Forecast, Australia, 2016–2020
  • FinTech: Growth Drivers, Australia, 2015
  • FinTech: Digital Payments Segment Forecast, Australia, 2016–2020
  • FinTech: Personal and Business Finance Segment Forecast, Australia, 2016–2020
  • FinTech: Financial Infrastructure and Data Analysis Segment Forecast, Australia, 2016–2020
  • FinTech: Segment Concentration, Australia, 2015
  • FinTech: Segment Concentration Forecast, Australia, 2020
  • FinTech: Mobile Payments Players, Australia, 2015
  • FinTech: Technological Innovation, Australia, 2015
  • FinTech: Top 5 Cryptocurrencies by Market Cap, Australia, 2013–2015
  • FinTech: Cryptocurrency Growth Drivers and Inhibitors, Australia, 2015
  • FinTech: Cryptocurrencies and the New Payments Platform , Australia, 2015
  • FinTech: Summary of Cryptocurency, Australia, 2015
  • FinTech: Digital Payment Market Position, Australia, 2015
  • FinTech: Digital Payment Market Analysis, Australia, 2015
  • FinTech: Average Self Managed Super Funds Assets, Australia, 2010–2014
  • FinTech: Total Self Managed Super Funds Assets, Australia, 2010–2014
  • FinTech: Self Managed Super Funds by 18–34 year olds, Australia, 2012–2014
  • FinTech: Potential Digital Natives Investment Pool, Australia, 2016–2020
  • FinTech: Internet Usage aged 18–34, Australia, 2013
  • FinTech: IBM Watson Analytics, Australia, 2015
  • FinTech: Facebook AI Research, Australia, 2015
  • FinTech: Digital Banking Ecosystem, Australia, 2015
  • FinTech: Personal and Business Finance Market Position, Australia, 2015
  • FinTech: Personal and Business Finance Market Analysis, Australia, 2015
  • FinTech: Blockchain as a Decentralised Ledger, Australia, 2015
  • FinTech: Working of Blockchain, Australia, 2015
  • FinTech: Research Collaboration, Australia, 2015
  • FinTech: Blockchain as a service, Australia, 2015
  • FinTech: Data Analysis, Australia, 2015
  • FinTech: Infrastructure and Data Analysis Market Position, Australia, 2015
  • FinTech: Infrastructure and Data Analysis Market Analysis, Australia, 2015
  • FinTech: Potential Security Attacks, Australia, 2015
  • FinTech: End-User Mobile Security, Australia, 2015
  • FinTech: Application Security Layers, Australia, 2015
  • FinTech: Biometric Security, Australia, 2015
  • FinTech: Drivers and Inhibitors for 5G Connectivity, Australia, 2015
  • FinTech: Connection Security Issues, Australia, 2015
  • FinTech: Data Centra Providers to Watch, Australia, 2015
  • FinTech: Server and Database Security Concerns, Australia, 2015

 

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