Australia has a sophisticated Financial Services Industry, as well as an advanced Information and Communication Technology (ICT) industry. Fintech is an important enabler of business development for financial services providers and other sectors of the economy that benefit from lower transactional costs, access to capital and more tailored financial products and services while providing greater choice and efficiency for businesses and consumers.
Fintech is now being defined as data monetized and money digitized. The ability of new technology to capture and process data, in real time, is changing how all business is done and the way consumers participate in this process. It is lubricating this transformation. It will have a catalytic impact with its potential to unleash a new era of competition and innovation. Fintech is not just about digitizing money, it is about monetizing data. It is about how we can create and capture the value add from data, previously limited by the technology we had available.
Fintech solutions hold enormous potential benefits to all business, especially new and existing small businesses. The Small and medium sized enterprises (SMEs) are crucial for economic growth and jobs. Fintech can help targeted businesses by providing improved payments systems, customer relationship management, seamless application forms and responsive online calculators. It will allow people to conduct transactions through their mobile phone or tablets, thus improving efficiency and overall customer experience. Data aggregators can synchronize financial data from various sources and integrate bank accounts from different financial institutions—reducing compliance costs for business. Fintech will not only improve the ability to match investors, lenders and borrowers; but will also provide a more level playing field that allows retail investors to have greater participation in market.