New data from Roy Morgan shows Australia’s total market for financial services increased by a record $1.27 trillion during the 2020/21 financial year to reach a total of almost $10.9 trillion in June 2021, an increase of 13.2%. The huge increase was greater than the combined increases over the preceding three years put together ($1.23 trillion from June 2017 to June 2020).
The growth in the market for financial services was across all four main categories, all of which were up strongly on a year ago:
- Owner-Occupied Homes
- Wealth Management
- Traditional Banking
- Direct Investments
In June 2021 Owner Occupied Homes comprised the largest share of the market for financial services representing over a third of the entire market with a value of $3.83 trillion (35.2% of the total market).
Wealth Management is the second largest segment representing well over a quarter of the entire financial services market with a value of $3.06 trillion (28.3%) in June 2021. This represents an increase of $266 billion on a year ago but the overall share in the market declined by 0.9% points from a year ago.
Traditional Banking was the fastest growing segment of the financial services market over the last year and now represents 23.8% of all financial services with a value of $2.59 trillion. This is the highest share of the overall financial services market represented by Traditional Banking over the last five years and an increase in value of over $500 billion on a year ago.
Direct Investments now represent 12.8% of the financial services market with a value of $1.39 trillion, up from a 12.1% share a year ago. The market for Direct Investments increased by $225 billion from June 2020. There is a further $0.7 billion not represented by the four main categories classified as ‘Other Banking’.
Michele Levine, Chief Executive Officer of Roy Morgan said “The COVID-19 pandemic hit Australia nearly 18 months ago in March 2020 and at the time there were significant worries about the durability of the Australian economy as well as key financial assets such as housing, stock-market investments and traditional banking and wealth management accounts. As it turns out these fears have proven largely unfounded. Although we are currently experiencing a third wave of the virus, with the highly contagious Delta variant causing lockdowns in all seven mainland Australian Capital Cities, fears about a financial crash have receded as the vaccine target of 80% of the population fully vaccinated looks set to be realised later this year.”
Australia’s total market size for any financial services: 2017-2021
Average 12-month sample n = 48,400. Base: Australians 14+; Any financial services customer. Note: Other Banking has been excluded as it represents 0.01% of the total market including $0.7 billion in the year to June 2021
Source: www.roymorgan.com
Story by Roy Morgan
Photo by Franki Chamaki on Unsplash