The size and structure of Australia’s wealth management industry will make it an attractive prospect for foreign fintech firms in the coming years, a new report from Microsoft has said.
The Moving Past Prosperity report, which the tech giant conducted in conjunction with Harvard Business Review, said that while payments and lending dominate the Australian fintech landscape, wealth management technology is growing rapidly, according to KPMG data.
“Australia hosts the world’s sixth largest pool of funds under management, substantially filled by its compulsory superannuation scheme,” the report said.
“With its potential for scale and cost savings through robo-advice, wealth management is expected to attract many international entrants.”
Added to this is Government’s 2017 budget commitment to “encourage the growth of fintech and digital shape-shifting in financial services”, including a commitment to an open banking regime.
“‘Open banking’ and the movement of data into the cloud is also expected to lure global tech giants into Australia’s financial services sector,” the report said.
“The base of power seems ready to shift to platform providers and end customers, particularly with the bar of customer expectation being set by digital consumer experiences.”