Fintech is a term that's reared its head over the past few years – unsurprisingly, it refers to companies that offer a combination of financial and technological expertise. In fact, these businesses have become so prevalent across Australia that they're starting to cause real concern across certain sectors. And banking is one of them.
So what does this mean if you're planning on buying commercial property on the Gold Coast? It highlights just how highly regarded digital expertise really are, suggesting they should form a part of any successful business plan.
PwC released a report last month titled Blurred Lines: How Fintech is Shaping Financial Services. It took a closer look at how these companies are operating and the effects they're having on the wider business community.
PwC's Asia fintech leader John Shipman said the lines between individual business functions are no longer as clear cut as they were in the past. Instead, firms are offering more to consumers in the hope that they will keep coming back – and using them as a one-stop-shop for services.
"What we are seeing now is a dawning awareness of the challenges and opportunities that fintech presents, and established players are now falling over themselves to get into the game," commented Mr Shipman.
Research findings showed 95 per cent of banks believe at least part of their business is at risk from a fintech disruptor. Meanwhile, two-thirds of companies in the financial services sector believe pressure on their profit margins is the main threat posed by fintech, followed by loss of market share with 59 per cent of the vote.
One of the biggest advantages of technology is that it can be beneficial to all sorts of different companies. Whether you are office leasing on the Gold Coast or running a major international corporation, digital services can be a real advantage when it comes to adding value for customers.
There is something of a digital divide emerging when it comes to people's attitudes towards companies, Roy Morgan Research has found. The group revealed that the "Desire Economy" – namely younger generations with a digital mind set – are considerably more valuable to businesses than other types of consumer. In fact, the group estimates that someone who falls into this category is worth around 2.6 times the value of an individual in the traditional economy.
Within this demographic, 40 per cent are considered early technology adopters, which compares to just 5 per cent of those in the traditional economy. This could be one of the reasons why fintech has gathered such pace over recent years – as this group becomes more tech savvy, the need to keep up with their needs has never been greater.
However, it's important to remember that appealing to this group isn't without its risks. More than half (53 per cent) of those questioned in the PwC survey said they're worried about security, while 43 per cent named regulatory uncertainty as a core concern.
These are the types of issue that will need to be overcome if the new digital age is going to be as effective as everyone hopes. Some businesses are likely to find they have some way to go before they reach this stage.
If your digitally-savvy business is ready to take the next step, then an enviable commercial property on the Gold Coast could be a good place to start. This well-connected business hub is highly desirable among many firms in Queensland and could be just what you need to kick-start your future.
Get in touch with the team at Ray White Gold Coast to find out more about what's on offer.