Australia Fintech Market to Grow at a CAGR of 15.65% During 2024-2032, Aided by the Increasing Adoption and Implementation of Digital Solutions in the Banking, Financial Services, and Insurance (BFSI) Sector

The Australia fintech market growth is fueled by the increasing digitalization across the banking, financial services, and insurance (BFSI) sector, along with the growing demand for advanced solutions in the banking sector to enhance customer satisfaction. Fintech, or financial technology, encompasses software that enhances financial services and processes, leveraging technologies like APIs, AI, blockchain, RPA, and data analytics. It aids businesses, companies, and consumers in managing finances using computers or smartphones. Fintech is extensively used in banking, financial services, and insurance (BFSI) for payments, loans, insurance, personal finance, wealth management, and more.

Fig: Percentage of Post Revenue Fintechs in Australia, 2016-2023

In the latest EY Australian FinTech Census (2023), a substantial 88% of participants reported being post-revenue, a significant increase from 78% in 2022. The study also found that 43% of fintech companies are now profitable, up from 30% in 2022. Additionally, business valuations are on an upward trajectory, with 13% of fintechs valued at over USD 1 billion, compared to 7% in 2022.

The rise of digitalisation is creating substantial opportunities for the fintech market expansion. There is a surge in demand for digital solutions that can enhance efficiency, reduce errors, and help manage large volumes of data effectively in the BFSI sector. The increasing adoption of fintech solutions to analyse financial behavior reflects the expanding landscape of digital transformation in BFSI.

Australia boasts over 800 fintech companies spread across its major cities, solidifying its position as a global fintech leader. This strong presence attracts companies aiming to establish Asian regional headquarters, capitalizing on Australia's fintech expertise. Australian fintech firms also show a keen interest in international expansion, forging partnerships abroad to drive growth.

The growing fusion of fintech with machine learning (ML) presents substantial benefits. ML, when applied to borrower spending patterns, enhances credit decision models by pinpointing risk indicators more accurately. This integration leads to the development of solutions that improve risk assessment and lending practices.

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Market Breakup by Deployment Mode, Technology, Application, and Region:

• The market is segmented based on deployment mode into on-premises and cloud.

• On the basis of technology, the market is categorised into artificial intelligence, application programming interface (API), robotic process automation, and data analytics, among others.

• Based on application, the market can be divided into payments and fund transfer, loans, insurance and personal finance, and wealth management, among others.

• By region, the market is segmented into New South Wales, Victoria, Queensland, Australian Capital Territory, and Western Australia, among others.

Key Findings of the Report:

• As reported by ABA, nearly all bank interactions in Australia have shifted to digital platforms, with mobile wallet transactions hitting USD 93 billion in 2022—an impressive surge from USD 746 million in 2018. Additionally, online banking interactions experienced a notable 21% growth between 2019 and 2022, according to ABA data.

• The Australian government is launching initiatives like Blockchain Pilot Grants to aid in reducing business compliance costs and providing tax incentives to fintech startups.

• The integration of robotic process automation and personalized AI to improve customer experiences in the banking sector, reduce repetition, cut costs, and deliver added value is expected to propel the Australia fintech market forward.

Key Offerings of the Report:

• The EMR report gives an overview of the fintech market in Australia for the periods (2018-2023) and (2024-2032).

• The report also offers historical (2018-2023) and forecast (2024-2032) market information for the deployment mode, technology, application and region of the Australia fintech market.

• The report analyses the market dynamics, covering the key demand and price indicators in the market, along with providing an assessment of the SWOT and Porter’s Five Forces models.

The major players in the Australia fintech market are Airwallex Pty Ltd., Zeller Holdings Pty Ltd., PTRN Pty Ltd., Judo Bank Pty Ltd., Zip Co. Limited, Athena Mortgage Pty Ltd., Property Exchange Australia Ltd. (PEXA), mx51 Group Pty Ltd., Afterpay Australia Pty Ltd., and Wise Australia Pty Ltd., among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

Key Highlights of the Report

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