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 banking sector. We note however that some of the more bullish predictions to date regarding FinTech have not yet come to fruition.
Another conclusion from our research is that although FinTech has undeniably brought benefits to the Australian banking sector, it has also generated certain unintended consequences which need to be carefully mitigated.
Source: Gen Advisory analysis, January 2019.
*The Gen Advisory team are Friends of FinTech Australia.
Our research to date on FinTech and RegTech is displayed below.
Gen Advisory will continue to monitor developments in the FinTech and RegTech space very closely.
How Gen Advisory can help Australian ADIs on FinTech and RegTech
Drawing from our toolkit of services, ways in which Gen Advisory can assist ADIs on FinTech and RegTech include the following:
- • Ascertaining the ADI’s current 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-related area of interest.
- • Assessing, in collaboration with the ADI, whether or not the ADI can benefit from FinTech and RegTech.
- • Designing an ADI-specific technical assistance programme on FinTech and RegTech.
- • Managing and executing, on the ADI’s behalf, a project on FinTech and RegTech.
- • Drawing from Gen Advisory’s network of FinTech Australia members, partnering with suitable FinTech providers if needed.
- • Conducting due diligence on prospective FinTech partners.