Sydney is at risk of losing its status as a financial hub according to a new report from The Committee of Sydney.
The SMH reports that the convergence of financial services and technology – Fintech as it is known – puts at risk Sydney and Treasurer Joe Hockey’s desire to become a major financial hub.
“Traditional financial services institutions are investing in technology innovation, rethinking their business models and even collaborating with Fintech firms,” the report says.
This means that it is no longer enough to be good at financial services on their own if a company, or indeed the City of Sydney, wishes to rise up the global pecking order.
In a shout out to budding Fintech entrepreneurs and Australia’s venture capital industry Andrew Low, chairman of a new Financial Services Knowledge Hub established by the Committee for Sydney, said that, “The key is to provide more opportunities for smart start-ups to interact with financial services businesses, both big and small, so we get innovation.”
The report says that between 25-30% of current banking revenues are at risk from disruptive technology.
It’s as much as risk to Australian bank earnings as it is to Sydney.
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