Australian alternative finance market hits $1bn

CEO says it's the "perfect time" for challenger banks to enter market

Australian alternative finance market hits $1bn


By Madison Utley

The future growth trajectory of Australia's $1bn alternative finance market will be debated by some of the leading disruptors and developers when the fourth edition of the AltFi Australasia Summit  takes place at Sydney's Doltone House on 15 April.

According to figures released by KPMG, Australia now holds a 32% share of the APAC alternative finance market, having grown 88% year on year and the total market is worth $1bn.

“This is the perfect time for challenger banks to enter the market. Through the use of technology and data we can provide our customers with greater control and transparency, and competitive rates,” said Volt Bank co-founder and CEO, Steve Weston.

During the 2019 edition of AltFi, Weston will be joined on stage by KPMG partner Ian Pollari; Nick Molnar, co-founder and CEO of fintech AfterPay; Noah Breslow, global CEO of alternative lender OnDeck; and NAB’s Jonathan Davey.

Peter White of the FBAA said, “We’re increasingly seeing mortgage brokers exploring new opportunities to partner with non-banks and alternative online lenders as a means to provide their customers with greater choice.”

During the summit, White will feature on a panel exploring how intermediaries can support SME lending from alternative sources.

According to AltFi Summit founder Glenn Hodgeman, “Australia may be facing the same tipping point we saw in the US and UK markets post-GFC, as disenchanted customers increasingly eschewed any organisations they thought were acting outside of their best interests, which in turn allowed the non-bank and online lending sector to develop significantly faster.

“When you add to this the fact that banks are not just competing with a burgeoning fintech scene, but with the arrival of Apple Pay, Google, and Amazon Loans also, it will be interesting to see what happens next for financial services in Australia,” he concluded.

There is more insight on the alternative finance market in Australian Broker magazine issue 16.05

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!