Federal Treasurer Scott Morrison has said that the growth of FinTech and the financial sector moving into the digital space has produced a shift in how businesses operate presenting challenges and opportunities.
At the recent G20 conference at Wiesbaden in Germany, Morrison spoke how innovation was changing the face of finance. In a report from InnovationAus, an Australian news site, he said that FinTech is the way of the future.
While we cannot go backwards, the success of fintech is not guaranteed. It is important that all of us work together, across borders, to help build this industry so that we can deliver for consumers, for businesses and for our respective economies.
The growth of FinTech is clearly a priory for Australia, which can be seen by the fact that the Treasury has established an Innovative Hub with the intention of aiding FinTech startups that are working with regulators.
In November, it was reported that Australian Treasurers were also increasing investment in the sector to help boost the country into becoming a leading country in financial technology. With over 100 companies being assisted through that country’s Innovation Hub and 24 licenses granted, Australia is slowly paving its FinTech path.
Last year the annual FinTech 100 list named nine Australian FinTech companies among the world’s leaders in the sector. The news of this for the nation can only be a good thing as it pushes the country up among the leaders within the sector.
Not only that, but a report from earlier this year has stated that FinTech revenue in Australia is expected to grow at a compound annual growth rate (CAGR) of 76.3 percent and exceed A$4 billion by 2020.
In 2015, the sector market produced A$247.2 million with 2016 generating further growth and 2017 is predicted to continue the upward trend. As innovative continues within the field, Australia will be focusing on three areas over the coming years: digital payments, personal and business finance, financial infrastructure and data analysis.
As the country continues to focus on the benefits that this innovative is providing other countries there are clear opportunities it’s expected to produce. One includes driving around $10 billion of revenue from traditional financial institutions, ensuring $3 billion worth of added revenue.
With the nation presenting itself as a friendly location for FinTech firms to establish themselves with eligible businesses able to test for a range of financial or credit services, it’s clear to see that Australia is keen to establish itself as the best financial technology country for companies.
Images from Shutterstock and Twitter.