As the global industries shift towards advanced technology, Australia's Fintech sector positions AI as the future, shrinking its investment in blockchain and cryptocurrencies.
The Australian financial technology (Fintech) sector is slimming down its focus on cryptocurrencies and blockchain technology as the world moves towards artificial intelligence (AI) and machine learning, according to a recent report. Despite its early adoption and significant investment in blockchain and cryptocurrency, Australia is progressively aligning its Fintech industry with the global shift towards AI and data analytics.
A Shift in Investment Pattern
The report, published by a well-known analytics company, suggested a trending decrease in the total funds invested in cryptocurrencies and blockchain technology in Australia. The details show that the country’s cryptocurrency-related investment declined by 124% between 2019 and 2020, from $74 million to $33 million. Similarly, blockchain-related investment dropped by 50% during the same period.
This change in investment behavior shows Australia moving in step with the rest of the world, which is beginning to prioritize AI and machine learning over blockchain and cryptocurrencies in the Fintech space. This reorientation is a direct response to the growth and potential of advanced technologies like AI, which continue to demonstrate promising applications for different industry verticals.
Blockchain and Crypto: Not a Lost Cause
However, the decreased investment in blockchain and cryptocurrencies does not suggest a complete abandonment of these technologies. Instead, it appears to reflect a strategic shift to align with global trends and the significant opportunities AI presents for the financial industry. Blockchain and cryptocurrencies are still relevant technologies, and they hold potential for the future.
Despite the decline, several Australian businesses continue to invest in blockchain solutions. A typical example is a popular loyalty program that transitioned its rewards scheme onto a blockchain platform last year. This move signifies an underlying belief in the technology’s future, despite the shift in investment priorities.
Emergence of AI and Machine Learning
While investment in blockchain and cryptocurrency contracts, AI and machine learning are emerging as the new frontiers in the Australian Fintech industry. AI and machine learning capabilities are currently in high demand, with their ability to simplify complex processes, improve customer experiences, reduce costs, and provide unprecedented insights from vast amounts of data.
This shift towards AI indicates Australia’s readiness to stay ahead in the Fintech race and its acknowledgment of AI as a cornerstone for future tech advancements. Frontline technologies such as AI, machine learning, data analytics, and cybersecurity are being prioritized to drive growth and transformation in the Australian Fintech sector.
Conclusion
In conclusion, while blockchain and cryptocurrency were once the shining stars of the Fintech industry, the spotlight is now on AI and machine learning. The Australian Fintech sector’s shift in focus signifies its efforts to stay relevant in the rapidly changing world of technology, even though blockchain and cryptocurrencies still hold potential. As global trends continue to evolve, the Fintech industry can expect continued shifts in focus, technologies, and investment patterns.
