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Fintech is now becoming the first choice for financial services for many Australians according to Fintech Australia which has welcomed a new report which shows Australia has among the best fintech market penetration in the world.
Fintech Australia says the EY Fintech Adoption Index released on Tuesday shows that Australia is now ranked fifth highest out of 20 surveyed markets for fintech consumer adoption.
This represents a big jump from the 2015 index, which showed Australia was ranked fifth out of six surveyed markets.
According to the report Australia has in the order of 400 fintech companies, with 72% of these companies supplying services to businesses and 54% supplying services to consumers.
{loadposition peter}“This index shows that fintechs are increasingly providing great services and real choice for Australians when it comes to financial services,” says FinTech Australia president Simon Cant.
“Fintech is no longer just an industry with future potential - it is now an industry which is delivering great on-the-ground outcomes and becoming the first choice for financial services for many Australians.
“We hope that this index result attracts the attention of domestic and international fintech investors as it underscores the opportunity for investors in this market to back fintechs that can rapidly attract material market share.
“The result also illustrates the strong credentials of Australia as a great international launch and expansion market for fintech products, due to its early adoption of new technology and ideas.”
Cant says the index also reinforced the urgency for ongoing and timely government regulatory support, including in creating an open financial data framework and expanding the scope of Australia’s regulatory sandbox, to ensure that Australian fintechs can fully capitalise on the Australian consumers’ appetite for innovative financial services.
Cant cites comments on the Index by Australian Treasurer Scott Morrison. “I welcome this result showing Australia is becoming one of the highest adopters of FinTech in the world.”
“FinTech adoption is good for the economy and good for Australian consumers. It also helps reduce tax avoidance and criminal activity, which levels the playing field for everyone.
“These results shows the Turnbull Government’s plan to make Australia a global FinTech centre is working. It will drive better outcomes for customers and businesses, making financial services cheaper, providing new and easier ways to obtain financing, faster services and more options.”
EY FinTech advisor Meredith Angwin said: “What the Adoption Index clearly shows is that FinTech is gaining widespread traction, both locally and globally, and has achieved the early stages of mass adoption in most countries.”
“In our previous report, we predicted local FinTech adoption rates were set to double and that has certainly been the case, with usage among digitally active Australians rising from 13% in 2015 to 37% in our latest survey. FinTech start-ups have been very successful in building on what they do best – using technology in novel ways and having a laser-like focus on the customer.”
To access the EY Fintech Adoption Index click here.
