Fintech forecast to add AUD $37 billion to Australia's GDP

Australia's fintech sector could generate AUD $71 billion in revenue and add AUD $37 billion to gross domestic product by 2035, according to research by Deloitte Access Economics and FinTech Australia.

The analysis estimates that the sector currently supports more than 109,200 full-time equivalent jobs across the economy. It places the direct workforce at 50,200 full-time equivalent roles, with the remainder associated with upstream supply chains and related activities.

Revenue growth on that scale would place fintech among Australia's larger growth sectors over the next decade. The modelling assumes an average annual nominal growth rate of approximately 10%, based on the report's description of the appropriate policy and investment settings.

Economic footprint

The research estimates fintech contributes AUD $13.6 billion in direct value added to the Australian economy in 2024-25, equivalent to 0.5% of GDP. It compares this footprint with that of private hospitals, which contribute approximately AUD $14 billion.

The report also situates fintech within the broader financial system. For comparison, the broader finance and insurance sector accounts for approximately 7.5% of GDP, according to Reserve Bank of Australia figures cited in the report.

It describes the research as the first national study to measure both the overall economic contribution and employment impact of Australia's fintech industry. The analysis draws on survey data from 63 fintech businesses, case studies with leading Australian fintechs, and economic modelling covering more than 580 fintechs nationwide.

The report also estimates that the ecosystem comprises more than 800 fintechs across 13 subsectors, including digital payments, lending, InsurTech, WealthTech, RegTech, and digital identity.

Business mix

Most fintechs operate as business suppliers rather than serving retail customers directly. The report finds 78% operate as B2B or B2B2C providers, with products embedded within other industries and platforms.

Surveyed fintechs ranked their strongest areas of impact as improving business productivity and driving innovation: 79% cited productivity benefits and 77% pointed to innovation. A further 66% identified enhanced consumer outcomes as a key impact.

Around half also cited financial inclusion and system integrity as areas where the sector generates broader social and economic value.

Capital constraints

Access to capital emerged as a key constraint on growth, with nearly one-third of surveyed fintechs naming it as their top challenge.

The report links capital access to the speed with which fintechs can scale and sustain product development, and notes that investor confidence and policy stability also influence funding flows into the sector.

FinTech Australia said the report will serve as a reference point in discussions with the government. The industry body represents more than 400 companies nationwide.

Rehan D'Almeida, Chief Executive Officer of FinTech Australia, said the sector has an opportunity to play a larger role in the national economy.

"Fintech has emerged as one of Australia's quiet economic success stories, and with the right policy settings, it could become a major export for Australia."

He said stronger capital access, simpler R&D support and investment in digital infrastructure would shape the sector's growth outlook.

"If we can strengthen capital access, simplify R&D support and invest in digital infrastructure, fintech could easily become a $71 billion industry within a decade; driving jobs, exports and global competitiveness at a time our economy needs it most," D'Almeida said.

Deloitte Access Economics Partner John O'Mahony said fintech's role extends beyond the direct value added captured in the modelling.

"While the report finds that the economic contribution of the Australian fintech sector is substantial today, it plays an equally, if not more important, role in lifting the efficiency of the broader financial sector. Fintechs drive innovation and competition, which is critical to both productivity growth and broader social objectives like supporting small businesses, improving choice and helping Australians access the housing market," O'Mahony said.

The report projects the sector's direct GDP contribution will rise from AUD $13.6 billion in 2024-25 to AUD $37 billion by 2035, contingent on capital availability and policy settings.