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Australian Fintech, Forecast for 2020

  • ID: 4030540
  • Report
  • December 2016
  • Region: Australia
  • 130 pages
  • Frost & Sullivan
Mobile Apps, Robo-Advice, Customised Analysis Algorithms, and Blockchain will ensure a CAGR of 76.3%.
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.

This research 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?

This study 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. This study 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.
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Executive Summary
  • Key Findings-Australian FinTech 2015-2020
FinTech Trends versus Traditional Finance
  • Australian FinTech-Business Cycle
  • FinTech Investments in Australia
  • Mobile Payment Trend
  • Wealth Management Technology-Timeline
  • Digital Ecosystem-Key to Success of FinTech and Banks
  • Blockchain and Decentralization
Sector Overview and Segment Definitions
  • Financial Services-Next-Gen Disruption
  • Research Scope and Market Segments
  • Market Offering by Segment
  • Business Models in the FinTech Industry
  • Definitions and Methodology
The State of the Australian Financial Sector
  • Current State of Australian Banking
  • Future Profitability
  • Changing Trends in FinTech
  • The Big Four-Westpac
  • The Big Four-CBA
  • Innovation Models of WBC and CBA
  • The Big Four-NAB and ANZ
  • Current Financial Sector Summary
Global and Asia-Pacific FinTech Trends
  • Global FinTech Activity
  • Key Global FinTech Company Profiles
  • Global FinTech M&
  • Global FinTech Dispersion
  • Asia-Pacific FinTech Activity
  • Asia-Pacific Innovation Hubs
  • Key Asia-Pacific FinTech Company Profiles
  • Global FinTech Summary
Australian FinTech Market Revenue Forecast
  • Australian FinTech Market Revenue Forecast
  • FinTech Market Growth Drivers
  • Digital Payments Segment Forecast
  • Personal and Business Finance Segment Forecast
  • Financial Infrastructure and Data Analysis Segment Forecast
  • Segment Concentration Forecast
  • Australian FinTech Forecast Conclusions
Digital Payments Trends in Australia
  • Mobile Payments
  • Apple Pay
  • Android Pay
  • Other Mobile Payment Apps
  • Apple and Google-Threat to Paypal
  • Visa and MasterCard to Decline as Google and Apple Acquire FinTech Companies
  • Mobile Payments Summary
Cryptocurrencies in Australia
  • Cryptocurrencies
  • Cryptocurrencies and Volatility
  • Growth Drivers and Restraints for Cryptocurrencies
  • Cryptocurrencies and the New Payments Platform (NPP)
  • Cryptocurrency Summary
  • Key Players in the Digital Payments Segment
  • Market Position of Digital Payment FinTechs
  • Digital Payments FinTech Market Analysis
  • Partnerships and Business Acquisition Opportunities
Analysis of Algo-Banking in Australia
  • What is Algo-Banking?
  • Self-Managed Super Funds-Key to Algo-Banking Growth
  • Algo-Banking to Grow with Digital Natives and SMSFs
  • Micro-Investing-Low-cost Investment Model for Digital Natives
Analysis of Artificial Intelligence in Australian Financial Services
  • AI &
  • Self-Learning AI-The Future Analytics Product of Financial Services
  • AI Hardware Architecture-The Foundation for Customised AI Software
  • Hypothetical Digital Banking Ecosystem
  • Partnerships and Business Acquisition Opportunities
  • Key Players in the Personal and Business Finance Segment
  • Market Position of Personal and Business Finance FinTechs
  • Personal and Business Finance FinTech Market Analysis
  • Personal and Business Finance Summary
Blockchain Analysis
  • Blockchain-Unexpected Disruption
  • Blockchain-How does it work?
  • Trends in Blockchain Research
  • Blockchain Development has Fostered Partnerships between ICT and Financial Services
  • Blockchain-as-a-Service
FinTech Data Analysis
  • Data Analysis in FinTech
  • Key Players in the Infrastructure and Data Analysis Segment
  • Market Position of Infrastructure and Data Analysis FinTechs
  • Infrastructure and Data Analysis FinTech Market Analysis
  • Partnerships and Business Acquisition Opportunities
  • Infrastructure and Data Analysis Summary
What does FinTech mean for ICT Market Participants?
  • Security Challenges and the Need for Security Vendors
  • End-user Attacks-The Highest Priority
  • Application-level Security-Stronger Than Browser Security
  • Expansion of Biometric Security
  • 5G Connectivity and Enhanced Security
  • 5G Connectivity and the Role of Telecommunications
  • Telecommunication Companies and FinTechs
  • Connection Security
  • Huge Opportunities for Data Centre Providers
  • Concerns in Server and Database Security
  • ICT and Telecommunications Opportunities
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