Market Trends of Australia Neobanking Industry
Rising Investment in Fintech in Australia Driving the Market
Digital Assets will be the largest market, and the digital investment market is expected to grow in the current year. Revenue in the digital assets market is projected to grow at a higher value. Modern users are increasingly digitalized, especially as many of Gen Z are already active adults in society. This is driving the growth of neo-bank funding in various parts of the world. The investment was made in various subsectors, with significant investments in the payments area coming from Airwallex and Till Payments. Judo Bank successfully launched on the ASX and Alex Bank completed a USD 13.2 million investment following the acquisition of its restricted banking license (RADI).
Growing Penetration of Smartphones & Increasing Digitalization Boosted the Neobanking Market.
Digitalization is sweeping the globe, especially in financial activities, and has reached the banking industry. Mobile payments or payments are done with a mobile electronic device such as a phone, a smartwatch, or a tablet. They are a viable alternative to cash, checks, or conventional debit and credit cards.
Australia is rapidly transitioning to a cashless society. Consumers' preferred method of payment was cash just over a decade ago. However, the adoption of digital payment systems, particularly debit cards, has gained popularity and is quickly becoming Australia's preferred means of payment. Newer alternative payment mechanisms, such as e-wallets and mobile payments, are gaining market penetration in addition to debit cards. The COVID-19 pandemic has expedited some of these technologies by encouraging firms to accept non-contact payment methods and offer online e-commerce. As mobile payment solutions become increasingly widespread and integrated within social media platforms, Australia is expected to increase mobile POS (Point of Sale) payments.
