FinTech Adoption in Australia
“The emergence of FinTech is only the latest wave of innovation to affect the banking industry. While banks have undergone various technology-enabled phases before, FinTech has the potential to lower barriers of entry…and drive the emergence of new business models. As a result, the scope and nature of banks’ risks and activities are rapidly changing, and the rules governing them may need to evolve as well.”
BCBS (2018), “Sound Practices: Implications of FinTech developments for banks and bank supervisors”, February 2018.
“The accelerating pace of change from regulatory and technological developments brings unprecedented potential to transform retail banking.”
UK Financial Conduct Authority, “Strategic review: Retail banking business models final report”, December 2018.
Mirroring overseas trends, the FinTech sector in Australia has been evolving and growing rapidly in recent years. The outlook for the sector remains positive.
Research conducted by Gen Advisory confirms that FinTech has indeed had a material impact on the Australian financial sector – with the caveat however that some of the more bullish predictions to date regarding FinTech have not yet come to fruition.
Another conclusion we have reached is that although FinTech has undeniably brought benefits to the Australian financial sector, it has also generated certain unintended consequences which need to be carefully mitigated.
Source: Gen Advisory analysis, January 2019.
The FinTech Ecosystem in Australia
FinTech is clearly a significant development for the Australian financial sector and one Gen Advisory will continue to monitor very closely.
Gen Advisory’s research to date on FinTech and RegTech is displayed below.
How Gen Advisory can assist financial institutions on FinTech and RegTech
Drawing from our toolkit of services, ways in which Gen Advisory can assist financial institutions on FinTech and RegTech include the following:
- • Ascertaining the institution’s understanding of, and receptiveness to, FinTech and RegTech.
- • Delivering bespoke training on the different types of FinTech and RegTech available.
- • Delivering bespoke research on a specific FinTech or RegTech-related area of interest.
- • Designing an institution-specific technical assistance programme on FinTech and RegTech.
- • Managing and executing, on the institution’s behalf, a project on FinTech and RegTech.
- • Drawing from Gen Advisory’s network of FinTech Australia members, partnering with appropriate FinTech and RegTech service providers if needed.
- • Conducting due diligence on prospective FinTech and RegTech partners.