SYDNEY, Australia—A new paper published here is predicting that fintechs will completely transform financial services to the point where payments are likely to be immediate in the next five years, while cash use will continue to decline and checks will be “obsolete.”
Many credit union leaders may respond by saying they’ve heard that forecast for many years, but researchers are saying the pandemic has changed the timetable.
The paper, from credit reporting agency CreditorWatch, says 2021 has been a “watershed” for the local fintech industry, noting there are now 733 fintech businesses in Australia, up from 629 at the end of 2019.
The Future of Fintech 2021 paper notes that as the pandemic drove more people to digital their confidence grew so much that they are now more comfortable using technologies, which the fintech sector has been able to capitalize on, Independent Financial Advisor explained.
“The local fintech sector has never been hotter,” CreditorWatch CEO Patrick Coghlan said.
The paper further noted that as consumer confidence with digital technologies grows, cross-partnerships and big banks’ interest in fintechs will improve consumer choice for banking products and services.