Finance in Australia - Industry Market Research Report

Accountable: Big banks pay the price as Royal Commission remediation costs reduce profitability

The Finance sector's operating environment has characterised by record low interest rates and market turbulence over most of the past five years. A strong residential property market supported by housing price growth and high numbers of house transfers have supported the incomes of many lenders. Yet, volatile business confidence and inflationary pressures have limited growth in capital expenditure from the private sector and overall demand from commercial clients. Competition from neobanks and other fintech disruptors has spurred some larger financial firms to invest in new capabilities in the online space. Overall, sector revenue is expected to decline at an annualised 2.5% over the five years through 2022-23, to $285.6 billion.

The Finance subdivision covers firms that provide banking and finance and investment trusts in Australia. The most significant industries in the Finance subdivision are domestic banks, foreign banks, non-depository financiers and financial asset investors. The subdivision excludes auxiliary finance and insurance service providers.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.