The fintech industry is constantly evolving as we speak. In Australia, a new report has been published which explains how there will be major growth in the years to come. Especially where business lending for SMEs is concerned, things will continue to improve from here on out.
Australia has a vibrant fintech ecosystem as of right now. A lot of growth has occurred over the past few years a diet seems this trend will continue. A new report shared by Fintech Australia shows there are some major growth opportunities ahead. Especially small and medium enterprises continue to show an increasing appetite for fintech and non-bank lenders. That in itself is a remarkable development, albeit one that will become visible in other countries as well.
Australian SMEs Shun Bank Lending
More specifically, the number of SMEs intending to use banks for funding has dropped significantly compared to 2014. With the percentage dropping from 38% to 24%, it is evident the banks are fighting a losing battle in this regard. Remaining competitive in the SME lending industry is a big challenge. At the same time, non-banking funding during this four-year period has reached new heights, which is always positive.
Fintech Australia chair Stuart Stoyan comments on this development:
“Australia’s 2.1 million small to medium enterprises are the backbone of the nation’s economy, employing more than 7.3 million people or about 68 per cent of Australia’s overall workforce. Fintech lending and finance firms are increasingly providing the capital that these businesses need to invest and grow, through a focus on innovation and customer needs.”
Whether or not this trend will continue, is a different matter altogether. It is evident SMEs rely on banks less often, which enables further competition in this industry. It is now up to the fintech startups to continue to make a positive impact in this regard. The growth figures are there for everyone to see, and it seems evident things will only continue to improve. Australian startups need to bring their A-Game to keep providing valuable service sot local SMEs in the years to come.
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