Fintech: Disrupting the way we bank
The emergence of disruptive technologies in foreign markets in particular Asia, Europe and North America, has made their way to our shores.
The emergence of disruptive technologies in foreign markets in particular Asia, Europe and North America, has made their way to our shores. Disrupters include ride-sharing service Uber and accommodation provider Airbnb, who owe their respective successes to the disintermediation of traditional taxi and accommodation/rental market structures.
Traditional financial institutions such as the big four banks have long enjoyed a captive market that have provided generous profits. According to the IMF, Australian banks have market power that comes from market concentration. Strong balance sheets allow our banks to provide a range of services to a large customer base. Typical customers have strong credit ratings, and pay higher interest relative to alternative providers. This environment makes the banking sector ripe for disruption.
A set of interviews with small-to-medium business customers, consumers, sector participants and subject matter experts has identified several technology trends that will impact personal loans, credit cards and the small-medium enterprise (SME) lending markets.