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.