According to a report from Oliver Wyman, settlement processes cost between $65 billion USD and $80 billion USD per year for banks and financial firms in the global market. Blockchain’s ability to reduce costs is a critical reason it is being adopted by fintechs and banks around the globe, with 77% of the financial services industry predicted to adopt the technology by 2020. The Australian government is pushing for a national uptake of blockchain wherever possible, unveiling a nationwide plan for investing and innovating in the technology in the coming years. As fintech revolutionises banking and private lending, Acumen Finance offers blockchain secured mortgage and lending solutions for consumer and commercial investors. Let’s take a look at how blockchain powers fintech in Australia and how it will change the game in 2020.
Fintech and blockchain are a dream marriage because the technology offers startups the opportunity for innovation with high levels of security as we enter the era of open banking. Blockchain allows fintechs to save money, reduces the time it takes to settle exchanges and increases efficiency. Blockchain innovation has led to the creation of smart contracts that automate cryptocurrency exchanges with high security. Additionally, it enables instant cross-border money transfers in an increasingly globalised economy. The cross border payment market is predicted to reach $240 billion USD by 2024. While traditional companies might take 3 to 5 days to transfer funds with higher fees, fintech startups like Transferwise have become highly competitive by offering fast, cheap, secure cross border transfers.
Perhaps the most significant result of utilising this promising technology is the reduction of fraud and cyber-attacks and improved data security. Another innovation blockchain has enabled is syndicated lending. Fintechs who enter the market early and adopt blockchain in ways that are advantageous for consumers will reap the benefits of early innovation.
Australia’s National Blockchain Plan
The Australian government recently announced a national blockchain plan to encourage companies to embrace the pioneering technology and to bolster innovation in fintech in Australia. The nation will study and invest in blockchain in an attempt to stay on the cutting edge of this technology, and it’s myriad of uses. The plan will focus on skills and innovation while also ensuring proper regulation and collaborations among businesses, supported by an investment of $100,000 AUD.
Australia is also looking beyond the traditional applications of blockchain with cryptocurrency and investigating its possible use for government payment systems. The government committed to a massive deal with IBM to increase data security and automation within federal departments through the technology. The Commonwealth Scientific and Industrial Research Organization (CSIRO) is a government agency focused on groundbreaking scientific research. Within the agency is Data61, one of the top blockchain research organisations in the world, with a specific focus on progressing government blockchain projects. As you can see, Australia is taking this ingenious technology seriously and moving with the current of the present digital revolution as it strives to be a leader in the global blockchain market.
Fintech and blockchain in Australia are restructuring our financial worlds and modern lives, allowing consumers and businesses of every level to benefit from technological progress. As digital penetration and advancing technologies like AI and machine learning reduce processing times, lower transaction fees, improve loan options, and increase data security, the fintech industry in Australia will continue to gain loyal consumers and the attention of global VCs. Our world is shifting increasingly to digital banking, and the banking sector is seeking dynamic solutions for commercial and private lending and mortgages.
Acumen Finance is at the forefront of the digital banking revolution. Its purpose is to provide state-of-the-art blockchain-secured mortgage and lending solutions to personal and commercial investors through our seamless online loan facilitation platform and unbiased methodology. We offer unparalleled service and a commitment to ensuring our customers find the best banking solutions to fit their needs. Contact us to find the most efficient and secure lending solution for your personal endeavour and take the stress out of funding your projects.