Question 1

What is the current growth trajectory for digital SME lending in Australia?

Accepted Answer

The online SME lending market is expanding at a 151% CAGR and is on track to reach a total value of $2bn by 2021. This growth is underpinned by a shift toward digital-first credit solutions, though the market remains underpenetrated compared to international peers.

Question 2

Is there still room for new entrants in the Australian fintech space?

Accepted Answer

Significant white space exists due to a major awareness gap; only 30% of Australian SMEs are aware of online lending options, compared to 70% in the US market. This 40% discrepancy represents a substantial customer acquisition opportunity for platforms that can effectively market to underserved businesses.

Question 3

Which consumer segment is driving the adoption of these digital financial services?

Accepted Answer

Millennials are the primary drivers of fintech adoption, currently accounting for 62% of all online loan customers. This demographic's preference for digital transparency is forcing the industry to move toward mandated data protocols, a shift already supported by 85% of fintech players.

Question 4

How significant is the threat from global technology platforms like Amazon?

Accepted Answer

The threat is immediate and proven, as evidenced by Amazon’s US$1bn global small-business loan book. Given their existing data infrastructure and success in the US, UK, and Japan, their entry into the Australian lending market is a matter of timing rather than probability.

AltFi Conference 2018 – Growth with transparency

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