The online alternative finance in Australia is now one of the biggest market shares in the Asia Pacific, coming in third after China and Japan. This is based on a new study conducted by the University of Sydney Business School, together with the Tsinghua University Graduate School at Shenzhen and the Cambridge Centre for Alternative Finance, in partnership with KPMG.
According to the research, titled Harnessing Potential: Asia Pacific Alternative Finance Benchmarking Report, the alternative finance market in Australia grew to $348 million in 2015. Australia was just behind China and Japan, which accrued $101.7 billion and $360.23 million, respectively.
The bulk of the market share came from marketplace/P2P business lending, which accounted for $355.51 million. It was followed by marketplace/P2P consumer lending which garnered $326.22 million; balance sheet business lending, $120.62 million; invoice trading, $116.95 million; reward-based crowdfunding, $81.22 million, and equity-based crowdfunding with $64.13 million.
According to KPMG’s Partner and Global co-lead of Fintech, Ian Pollari, online AltFi has been growing rapidly since 2013, even though it is still relatively new. China clearly dominates the Asia Pacific, but Australia is building a niche in the market.
Pollari believes that an alliance between fintech startups and financial organizations will generate more opportunities for Australian businesses, but Australia needs to step up its game when it comes to regulations.