Australia’s Alt-Fi market triples: KPMG
Australia's alternative finance (Alt-Fi) market has tripled over the last year, following a broader trend of robust growth in peer-to-peer lending and crowdfunding across Asia Pacific.
The findings come from a new study by KPMG this week, titled Harnessing Potential, Asia Pacific Alternative Finance Benchmarking Report, which examined over 500 Alt-Fi companies across the region.
The report found Australia to be the third largest market for these services in Asia Pacific, recording a growth of 320 per cent last year with over US$348 million in reported Alt-Fi funding.
KPMG's fintech practice global co-lead, Ian Pollari, said that despite being a "relatively new concept", Alt-Fi had gained significant traction globally since 2013.
"In Asia, [it] has already become a multi-billion dollar market," Pollari said.
"Activity in China dwarfs much of the region, but Australia is punching above its weight, creating niche markets and capitalising on the sophistication and financial muscle of its established financial services sector."
Pollari said a key trend that we can now expect to see is a greater level of collaboration between incumbent financial organisations and alternative finance platforms in Australia.
"Looking ahead, 2016 is predicted to be the year where ‘alternative' financial options finally join the ranks of the mainstream," he said.
"We foresee continued growth in awareness amongst consumers and businesses of the viable funding options alternative finance platforms can provide."
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