Development Fintech in Australia
Australia is one of the first countries, which began to pay great attention to the development of Fintech at the government level, introducing innovations in its financial system. This approach allows to strengthen the position of the state in the field of competitiveness at the international level and attract more venture investment.
In recent years, starting from 2015 to 2019, the number of fintech companies in the country has increased fivefold. Fintech subsectors affect various economic sectors of the state. From an investment point of view, the most developed subsectors in Australia are funding and payments.
There is also an increase in companies developing in WealthTech (Capital Management), Insurtech (innovation in the economy insurance sector) and blockchain technologies.
In the first half of 2019, foreign investments in the amount of 101 million US dollars were attracted to the Fintech Industralian industry. As of September 2019, 629 Fintech companies operate in Australia, which is 8% more than for the same period of 2018. Almost 60% of the country's adult population actively uses Fintech technologies.
Despite the fact that Fintech and banks or other financial institutions are not connected directly, the new Fintech business model unites online technology and financial services.
Australia strives with the help of Fintech to improve the efficiency of its banking sector. New digital technologies will allow banks to expand the range of banking products, minimize operating costs and become more competitive as regional and internationally.
Thus, customers from the introduction of Fintech in the financial sector receive the following benefit:
A simple and fast registration process in the online banking system.
Solving different queries in the minimum time.
Personalization of service separately each client.
Effective ways to communicate with those who have not yet opened a bank account.
For example, the Australian government currently makes amendments to the Laws "On Treasury" in terms of the program concerning the Consumer Data Base (Consumer Data Right (CDR)). This suggests that Fintech technologies will be applied at the state level to organize a consumer database and ensure access to it.
The banking sector is the first subject of all economic sectors of the country, where the CDR law will be applied. So by February 2020, four large Banks of Australia will provide personal data in CDR on their customers.
This information will include confidential data regarding credit and debit card users, mortgage loans and calculated (transactional) accounts. All other banks must provide information in CDR until July 2020.
Meanwhile, experts note that at the global level investment in Fintech technology slowed down a bit. If in the first half of 2018 the size of the attracted investment in the FINTECH sphere was 62.8 billion US dollars, then in the first half of 2019, this figure was 37.9 billion dollars.
Nevertheless, the Australian government intends to continue to improve the regulation of the FINTECH sphere, and is trying to create the most comfortable conditions for the activities of foreign and national investors.
Such a state approach motivates investors to develop and implement new products and services in the financial sector of the country, as well as export these services to other countries of the world.