Wealth and investment is one of Australia’s largest fintech sub-sectors according to an industry representative group.
Releasing its first member ecosystem map, FinTech Australia showed wealth and investment sits alongside consumer and business lending as the two largest fintech sub-sectors.
The map, which visually represents the industry body’s 119 service providers alongside key financial services regulators, includes robo-advisers Six Park and Clover, micro-investing company Acorns, and recently launched superannuation product Spaceship.
According to FinTech Australia chief executive Danielle Szetho, fintechs operating in the consumer-facing wealth and investment space have already made major penetrations into the Australian market.
“Many of our fintechs in the wealth and investment area are run by highly experienced financial service executives, who have left large corporate institutions to begin their own innovative startup companies that are unencumbered by large legacy systems,” Szetho said.
Szetho added the map also showed the many other growing areas of the Australian fintech ecosystem, including payments, wallets and wearables, blockchain/distributed ledger, regtech, insurtech, data aggregators and cybersecurity.
The latest EY FinTech Adoption Index shows Australian consumers are embracing fintech at a rapid pace, with Australia now ranked fifth highest in fintech adoption among 20 markets surveyed globally.
The study, based on 22,000 online interviews with digitally active consumers across 20 markets, including Australia, shows FinTech services are poised for mainstream adoption on a global scale with an average of one in every three (33%) digitally active consumers now using fintech.
EY fintech spokesman Rowan Macdonald says Australia’s top five ranking represents a significant increase in local levels of FinTech adoption over just the last 18 months.
“In our previous report, we predicted FinTech adoption rates were set to double and that has certainly been the case, with current usage among digitally active Australians rising from 13% in 2015 to 37% in our latest survey,” Macdonald says.
“Ease of setting up an account and having access to services 24 hours a day, seven days a week are the top drivers for FinTech adoption in Australia. We expect rates of adoption to continue to grow as awareness of innovative products and services build.”
Fintech Australia’s Szetho hopes that the map will help build domestic and international understanding of the nation’s fintech strengths and diversity, particularly in wealth generation and lending.
“The map is arguably the best visual representation yet of our fintech industry, which is the largest startup sub-sector in Australia,” Szetho said.
“The broad range, depth and quality of fintechs on this map shows just how far Australia’s fintech environment has come in less than two years.
FinTech Australia plans to update the map at least once every six months.