Supplying services to business the new growth area

Australia’s fintech sector is firing on all cylinders. More than 400 fintech companies are jostling for shoulder room in the market right now, and 72 per cent of these companies are supplying services to businesses.

The upsurge in fintech companies can be attributed to the speed of business today, which places a greater premium on business readiness.

Fintech companies are typically new financial services entrants providing genuine alternatives in areas such as wealth generation, lending, payments, insurance, cyber security and regulatory management.

By global comparison, Australians are big fintech adopters. A recent report reveals that we have among the strongest fintech market penetration in the world, ahead of other advanced markets such as Hong Kong, Singapore and the United States.

In fact, 37 per cent of Australia’s digitally active population are now fintech users, compared to just 13 per cent in 2015, according to the EY FinTech Adoption Index.

The index shows Australia has leapfrogged Hong Kong, Singapore and the United States in the ranking table and also stands ahead of other markets such as South Korea, Canada and Japan.

In addition, the number of Australians who said they would prefer to use a traditional financial services provider dropped from 23 per cent to 10 per cent. The index is based on 22,000 online interviews across the world.

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Source: Supplying services to business the new growth area | afr.com