At first sight, the ecosystem seems to be maturing and competition between actors is intensifying. Contributing to this is the fact that the Australian government is extremely open to promoting the fintech agenda and towards open banking, which is also good for local fintechs. This top-down guidance not only leads to increased flexibility for innovative actors at the regulatory level, but is also suitable for reshaping consumer preferences. And in Australia, this is exactly what is happening as a growing proportion of the population is looking for digital financial services.
Neo-banks are also gaining ground in the country, but in a slightly different form than in the rest of the world. Of the four prominent market players, Xinja threw in the towel at the end of last year, while 86,400 were bought by National Australia Bank (NAB) and Up Bank by Bendigo Bank. With this, only the former Bank remained in the hands of the founders, who had just started to lay the foundations for their lending activities in the summer.
Neobank acquisitions confirm that replace their outdated services with digital and customer-friendly solutions, as long as they do not want to lose a significant proportion of their customers. This includes in-house solutions as well as the acquisitions already mentioned, the success of which will be determined by their ability to effectively coordinate the operations of bureaucratic banks and agile finteches.
Returning to the fintech subsectors, neobanks is also much more powerful in the buy now, pay later providers breakthrough in the Australian market. The solution is unbroken in popularity among the public, as evidenced by the recent acquisition of market-leading Afterpay for $ 29 billion by digital payment company Square. Another player, Zip, is trying to take up the gloves with incumbents and Big Techs entering the sector through aggressive geographic expansion, which is why they have already set foot in Europe, the Middle East and Africa this year. However, BNPL mania has inspired others as well, with the Commonwealth Bank of Australia (CBA) recently launching its own BNPL solution among the incumbents. It plans to carve out a bigger slice of the market by enticing traders.
In addition to the positive ones so far, it is clear that there are still areas in need of catching up. The lack of service in the SME sector, for example, is very eye-catching for experts: one of the most expensive in the world in Australia is the cost of currency exchange and international transfers. In light of this, it is no coincidence that Revolut’s corporate service package, Revolut Business, has rapidly gained popularity in the country. and growing customer demand for digital and modern banking services could bring further success stories among Australian fintechs. Incumbents are expected to try to respond even more actively to consumer expectations, so they have a good chance of catching some slices from the sails of the finteches, as long as they successfully adapt to market trends.
From a domestic point of view, . Of the mature fintech markets, Australia is the closest to the Hungarian population in terms of size. As a result, a significant part of the fintech services that will be successful there can be introduced in Hungary even with appropriate preparations.
Peak’s research and consulting team prepares a comprehensive overview every month. about the moments of the fintech world, their effects on the banking sector, insurance companies, the IT sector and government agencies. In the studies, we deal in detail with the most successful business solutions in foreign markets, as well as their domestic feasibility. If you have any questions about the full overview or any of its elements, please contact [email protected]
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