Australia: Fintech Battles with Banks Over Trust

In Australia, big banks are having a easier time compared to the other markets when it comes down to the fintech competition. Whatever the case might be, banks need to up their game to keep up with fintech according to a new report into world banking trends.

When it comes to fintech products, Australia is still slightly behind, but those using them are far more likely to recommend them further, according to a 2016 World Retail Banking Report.

The real strength of conquering new zones could be found in the collaboration between fintech firms and banks.

“Where they (banks) were strong in some areas, fintechs were strong in others and there was a real opportunity to partner,” said Sharon Rode.

Clients are trusting banks substantially more than newer fintech products but ease of use has driven close to two thirds of Australians into trying the tech products.

“The large customer base that the banks come with and where the fintech’s can add value is helping them know their customer a bit better,” Ms Rode said.

Even though banks seemed to embrace tech companies in the long run, Ms Rode noted that many executives realized the need of stepping up the game in order to keep pace with fintech.

“The inability of banks to innovate leaves the door wide open for fintech providers to attract new customers,” Ms Rode said.

Fintech and Banks in Australia, the figures:

  • 51 per cent of people trust banks
  • 24 per cent trust financial technology firms
  • 63 per cent use fintech products
  • 96 per cent of banking executives say financial services are moving into a digital future
  • But only 13 per cent say they have a system in place to support it