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A new report has found that FinTech revenue in Australia is predicted to grow at a compound annual growth rate (CAGR) of 76.3 percent and exceed A$4 billion by 2020.
The research, Australian Fintech, Forecast for 2020, found that this increase was down to a reduction in taxes on investments in startups, tech-savvy digital individuals, and a rise in mobile payments.
According to Research and Markets, in 2015 the Australian FinTech market produced A$247.2 million with 2016 generating further growth and 2017 predicted to continue the upward trend.
The research found that there are three areas that financial technology services are focusing on in Australia that will grow by 2020: digital payments, personal and business finance, financial infrastructure and data analysis.
With the FinTech sector continued to grow in the country it’s expected to drive around $10 billion of revenue from traditional financial institutions, ensuring $3 billion worth of added revenue.
The Rise of FinTech in Australia
With billions invested in the FinTech industry each year it’s no surprise that this is one of the fastest growing industries in the world.
As such, ensuring that a country establishes itself as an attractive location for startups to begin their new adventure, means that a country needs to have the right ingredients to appeal to companies.
Australia seems to be one such nation.
Last year, the treasurer of Australia announced that all eligible businesses would be able to test a range of financial or credit services with up to 100 retail clients and wholesale clients for up to 12 months without a license or approval from ASIC.
Such a move presents the country as a friendly location for FinTech firms to establish themselves.
Not only that, but with financial technology firms in Australia recognized as world leaders in FinTech and Australian treasurers increasing investment in the sector, it’s not surprising that the country is experiencing a boom within the industry.
Australia Embraces Blockchain
Over the last year Australia’s interest in the blockchain has increase.
So much so, that it’s been reported that wheat farmers are trailing blockchain to sell grain, an Australian travel firm is piloting blockchain to make bookings with Microsoft, while Australians have voiced how they want to trade excess solar on the blockchain.
With growing interest in blockchain technology and increased funding in the FinTech sector, Australia is demonstrating the potential impact it could present to leading countries such as London and Singapore by removing them from the top spots.
Featured image from Shutterstock.