Australian Fintech, Forecast for 2020

Mobile Apps, Robo-Advice, Customised Analysis Algorithms, and Blockchain will ensure a CAGR of 76.3%.

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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.

Table of Contents

Executive SummaryKey Findings—Australian FinTech 2015–2020Key Findings—Australian FinTech 2015–2020 (continued)FinTech Trends versus Traditional FinanceAustralian FinTech—Business CycleFinTech Investments in AustraliaMobile Payment TrendWealth Management Technology—TimelineDigital Ecosystem—Key to Success of FinTech and BanksBlockchain and DecentralizationFrost & Sullivan GI Quadrant—FinTech DisruptersFrost & Sullivan PI Quadrant—Australian Banking StrategySector Overview and Segment DefinitionsFinancial Services—Next-Gen DisruptionFinancial Services—Next-Gen Disruption (continued)Research Scope and Market SegmentsMarket Offering by SegmentBusiness Models in the FinTech IndustryDefinitions and MethodologyThe State of the Australian Financial SectorCurrent State of Australian BankingFuture ProfitabilityChanging Trends in FinTechThe Big Four—WestpacThe Big Four—CBA Innovation Models of WBC and CBAThe Big Four—NAB and ANZCurrent Financial Sector SummaryGlobal and Asia-Pacific FinTech TrendsGlobal FinTech ActivityKey Global FinTech Company ProfilesKey Global FinTech Company Profiles (continued)Global FinTech M&A ActivityGlobal FinTech DispersionAsia-Pacific FinTech ActivityAsia-Pacific Innovation HubsKey Asia-Pacific FinTech Company ProfilesKey Asia-Pacific FinTech Company Profiles (continued)Global FinTech SummaryAustralian FinTech Market Revenue ForecastAustralian FinTech Market Revenue ForecastFinTech Market Growth DriversFinTech Market Growth Drivers (continued)Digital Payments Segment ForecastPersonal and Business Finance Segment ForecastFinancial Infrastructure and Data Analysis Segment ForecastSegment Concentration ForecastAustralian FinTech Forecast ConclusionsDigital Payments Trends in AustraliaMobile PaymentsApple PayAndroid PayOther Mobile Payment AppsApple and Google—Threat to PaypalVisa and MasterCard to Decline as Google and Apple Acquire FinTech CompaniesMobile Payments SummaryCryptocurrencies in AustraliaCryptocurrenciesCryptocurrencies and VolatilityGrowth Drivers and Restraints for CryptocurrenciesCryptocurrencies and the New Payments Platform (NPP)Cryptocurrency SummaryKey Players in the Digital Payments SegmentKey Players in the Digital Payments Segment (continued)Market Position of Digital Payment FinTechsDigital Payments FinTech Market AnalysisPartnerships and Business Acquisition OpportunitiesAnalysis of Algo-Banking in AustraliaWhat is Algo-Banking?Self-Managed Super Funds—Key to Algo-Banking GrowthAlgo-Banking to Grow with Digital Natives and SMSFs Micro-Investing—Low-cost Investment Model for Digital NativesAnalysis of Artificial Intelligence in Australian Financial ServicesAI & Digital EcosystemsSelf-Learning AI—The Future Analytics Product of Financial ServicesAI Hardware Architecture—The Foundation for Customised AI SoftwareHypothetical Digital Banking EcosystemPartnerships and Business Acquisition OpportunitiesKey Players in the Personal and Business Finance SegmentKey Players in the Personal and Business Finance Segment (continued)Market Position of Personal and Business Finance FinTechsPersonal and Business Finance FinTech Market AnalysisPersonal and Business Finance SummaryBlockchain AnalysisBlockchain—Unexpected DisruptionBlockchain—How does it work?Trends in Blockchain ResearchBlockchain Development has Fostered Partnerships between ICT and Financial ServicesBlockchain-as-a-ServiceFinTech Data AnalysisData Analysis in FinTechKey Players in the Infrastructure and Data Analysis SegmentMarket Position of Infrastructure and Data Analysis FinTechsInfrastructure and Data Analysis FinTech Market AnalysisPartnerships and Business Acquisition OpportunitiesInfrastructure and Data Analysis SummaryWhat does FinTech mean for ICT Market Participants?Security Challenges and the Need for Security VendorsEnd-user Attacks—The Highest PriorityApplication-level Security—Stronger Than Browser SecurityExpansion of Biometric Security5G Connectivity and Enhanced Security5G Connectivity and the Role of TelecommunicationsTelecommunication Companies and FinTechsConnection SecurityHuge Opportunities for Data Centre ProvidersConcerns in Server and Database SecurityICT and Telecommunications Opportunities will be Security FocussedFinal Word from Frost & SullivanLessons for Australian FinTech from the Global SectorThe Final Word from Frost & SullivanLegal DisclaimerAppendixList of Company of ProfilesList of Company of Profiles (continued)List of ExhibitsList of Exhibits (continued)List of Exhibits (continued)List of Exhibits (continued)List of Exhibits (continued)The Frost & Sullivan StoryThe Frost & Sullivan StoryValue Proposition: Future of Your Company & CareerGlobal PerspectiveIndustry Convergence360º Research PerspectiveImplementation ExcellenceOur Blue Ocean Strategy




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