Very few people are aware of how the Australian Banking sector is subject to substantial regulation, which was drafted to prevent monopolies and collapses. Although there are four “major” banks in the country, the government keeps them separated as much as possible. Ever since the financial crisis hit in 2008, consumers started flocking to these four big banks, as they were the ones benefiting from market share recovery which was lost by smaller institutions.
While all of this is fine and dandy, a recent study by Frost & Sullivan shows that the Fintech market in Australia is a force to be reckoned with. Early projections estimate this market will reach the AUD4 billion mark by 2020, 25% of which will come from new added value to the country’s economy. But that is not what has caught the attention of financial experts, as the report also mentions banks stand to lose a lot from not collaborating with Fintech players.
To be more precise, Australian banks could lose as much as AUD13 billion in revenues by letting Fintech companies be their own industry. Keeping in mind how only AUD3 billion of this number would come from new revenue to the Australian Financial Services Sector between 2015 and 2020, the majority of this revenue would come directly out of the pockets of the four leading banks.
read further here :
http://www.newsbtc.com/2016/04/10/ignoring-bitcoin-could-harm-bank-revenues/
