- Comments: 0
TRADING & TECH
Frost and Sullivan: Australian fintech revenue will exceed A$4 billion by 2020
Mobile apps, robo-advice, customised analysis algorithms and blockchain will ensure a CAGR of 76.3%
January 9, 2017: 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, says a report by Frost and Sullivan. 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.
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.
Among the disruptors are EFTPOS and online charging solutions that will allow more merchants to be paid through credit cards and 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.
- Comments: 0