Findings from Frost & Sullivan indicate that Australia’s fintech sector will reach a total value of $4.2 billion in the next four years.

According to a new study from Frost & Sullivan, sharp growth in the fintech market will be seen during 2016 and 2017, increasing through to 2020 and growing at a CACG of 76.36 per cent.

Of the $4.2 billion expected total value, around a quarter will be new added value into the domestic economy. The global fintech sector showed robust growth in 2014, with investment activity tripling.

“Growing consumer confidence and popularity of new Fintech products will see steady revenue growth in digital payments.  In Personal and Business Finance, the share of revenue to mobile oriented personal finance solutions will expand as consumers become more comfortable with peer-to-peer lending, micro-investing and mobile based book-keeping,” said Frost & Sullivan Research Analyst, Saranga Sudarshan.

“Various services will be offered by Fintech companies that are not fulfilled by the “Big Four” Australian banks. These include new payment methods, financial and investment advice to low-income customers and quick access to short-term credit.”