Impact of fintech in Australia

The first comprehensive analysis of the economic contribution of the Australian fintech sector shows the sector could become a key driver of Australia’s future growth.

The report undertaken by Deloitte Access Economics on behalf of FinTech Australia, draws on survey data from 63 fintech businesses, case studies with leading Australian fintechs, and economic modelling of more than 580 fintechs nationwide. The report finds that:

• Fintech currently contributes $13.6 billion in direct value added to the Australian economy — equal to 0.5 per cent of GDP.
  
• The sector employs 50,200 FTE directly and supports 109,200 FTE jobs including in upstream supply chains.
• It encompasses more than 800 fintechs operating across 13 subsectors, including digital payments, lending, InsurTech, WealthTech, RegTech and digital identity.
• The majority (77%) of fintechs operate as B2B or B2B2C providers, embedding technology within other industries.
• Fintechs identified their strongest areas of impact as improving business productivity (79%), driving innovation (77%) and enhancing consumer outcomes (66%).
• Around half also cited financial inclusion and system integrity as key areas where they deliver broader social and economic value.
• With the right policy and investment settings, the sector could expand at an average annual nominal growth rate of around 10 per cent. This could see its economic contribution rise to $37 billion a year in a decade.

The report also explores the role that Fintechs play in driving innovation and competition which is critical to both productivity growth and broader social objectives like supporting small businesses, improving choice and helping Australians access the housing market.