Financial services can replace mining as the next major export industry for Australia, according to John Brogden, CEO of the Financial Services Council.
Speaking at the launch of the 13th annual FSC-DST CEO Survey Brogden said this year’s report clearly shows that as the mining investment boom slows and the centre of global economic growth shifts to Asia, the Australian financial services industry is ready to take a greater role in Australia’s export growth.
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"To do so, the financial services industry first needs to move on from domestic regulatory change to make the most of its potential as the largest sector in the Australian economy," he said.
This year, 55 of the FSC’s 78 member CEOs participated in the survey which captured their views on the issues and challenges their businesses are facing in Australia. They were also asked about their experiences in the Asian region, their views on opportunities, and their knowledge of factors holding back further growth in exports.
"Critically, the report reveals that the industry’s CEOs see a role for government in promoting this expansion, but one that is a light-touch," Mr Brogden said.
"The industry does not seek subsidies or protection, but sees a role for the Government in developing relationships, coordinating and branding the industry’s approach to Asia and in making our tax system competitive in the region."
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By GlobalDataCEO’s in the survey said boosting Australian financial services to Asia can be achieved by exporting expertise and skills and ‘manufacturing’ products in Australia and using these to tap into the rapidly expanding savings pool of the broader region.
Rhys Octigan, Regional Head of Business Development – Australia and New Zealand for DST said:
"There is no doubt that the world’s economic centre is gravitating towards Asia and exports to this region will become increasingly important for Australian companies looking to grow.
"However, when looking at exporting products or services to other markets, systems, processes, and infrastructure need to be embedded in the overall package to make it an attractive value proposition."
The 13th FSC-DST CEO Survey indicated that CEOs believe technology plays a major role when considering strategic initiatives and in the delivery of new financial products.
Australian financial services firms can gain efficiencies by exporting their technology infrastructure to help expand their footprint in Asia, according to Mr Octigan.
"Technology infrastructure provides the foundation for growth into Asia and into other global markets. Only by understanding the dynamics and the challenges that the industry faces will adequate solutions be developed and adopted, allowing the industry to grow from strength to strength," Mr Octigan said.
Mr Brogden added: "Australia has a world leading financial system, robust governance and outstanding expertise. Integrating these strengths with good processes and systems will make Australia a very attractive prospect as an exporter of financial services."
