Financial Services Sector in Australia

The finance and insurance sector is the largest in the Australian economy, driven mainly by home mortgages, superannuation funds, financial planning and insurance. It is also anticipated that the Asia Pacific region will become the global economic powerhouse of the next century.

The Australian financial services sector is the largest contributor to national output, generating 11% of real gross value.

Market overview

Banking

The banking sector is dominated by ‘the big four’ banks. They are; The Commonwealth Bank, Westpac, ANZ and NAB.

The four banks hold 33% market share of the finance industry and reported aggregated profits of £6.4 billion ($11 billion AUD) for the year ending June 2012. Australia is also one of just 8 countries to have a credit rating of AAA.

The Australian Funds Management sector is the fourth largest in the world & the largest in the Asia-Pacific region with Australians having the highest per capita investment in managed funds globally.

Superannuation

The value of super funds is expected to triple from £64.5 billion ($1.1 trillion AUD) in June 2009 to £186.9 billion ($3.2 trillion AUD) by 2035.

Self Managed Super Funds (SMSF) are increasingly popular; they constitute 30% of funds and are expected to grow 6.2% by 2018.

Financial planning

Australia’s ageing population and the complexity of the financial industry ensures demand for financial advice will continue to rise. People contemplating retirement are more likely to seek financial advice and have a greater share of wealth due to a longer time period over which to accumulate it.

Insurance

Life insurance accounts for 42% of insurance brokerage revenue.

Just 30% of private insurance policies are written by brokers.

Brokerage firms & risk consultants are increasingly involved in M&A transactions.

Online aggregators are increasingly popular, enhancing customer’s ability to easily change their provider and increasing competition.

Key opportunities

The superannuation industry will continue to grow, banking is resilient and the insurance sector is still performing well. Companies and individuals with British expertise may find a market in Australia as brokers, advisors or consultants or by introducing innovative new products and services.

Banking

  • Product innovation through new distribution networks and an expansion of products within the banking industry has been identified as a key way to continue banking growth. There are opportunities for those in the British banking sector with innovative products and ideas.

  • Margin lending is recovering with some banks increasing their investment due to expectations of high growth. Large global banks capable of supporting the credit required in high-end deals for Australian and multinational mining companies are likely to find opportunities in Australia.

Superannuation

  • The popularity of SMSFs creates opportunities for those providing advice to individuals on this area.

  • Fund managers with international experience who can advise on the complex and increasing choice of products offered to members will also be in demand.

Financial planning

  • The recent Future of Financial Advice legislation should result in an expansion of low cost, simple advice, encouraging ordinary Australians to seek personal financial advice. There are likely to be opportunities for UK advisors to provide such advice.

Insurance

  • As more than 90% of policies in the commercial market are written through brokers there is likely also opportunity for British brokers in the market.

Latest export opportunities in the Financial & Professional Services sector

Latest export opportunities in Australia

Getting into the market

UKTI’s team in Australia, with its wide local knowledge and experience, can provide a range of services to British-based companies including:

  • Bespoke market research

  • Introductions to contact in Australian business and government

  • Product launches and events

  • PR and marketing support

  • Business centre hire

More about doing business in Australia

Contacts

Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).

To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.

Contact your local international trade team

Events

UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.

Latest events in Financial & Professional Services Sector

Useful links

More about OMIS and other UKTI services for exporters

Sectors: Financial & Professional Services
Countries: Australia
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