Invest
Australia’s financial sector balloons to just under $11 trillion
Strong bounces in property and share prices over the last 18 months have seen Australia’s financial sector balloon to well over $10 trillion, new research has revealed.
Australia’s financial sector balloons to just under $11 trillion
Strong bounces in property and share prices over the last 18 months have seen Australia’s financial sector balloon to well over $10 trillion, new research has revealed.
Stats released by Roy Morgan’s Banking and Finance Report revealed that Australia’s total market for financial services grew by a record 13.2 per cent over the last financial year to a total of almost $10.9 trillion in June.
All four categories, including owner-occupied homes, wealth management, traditional banking and direct investments showed signs of growth.
Australia’s financial fortunes remain tied up with the property market, which at the end of June made up a third of Australia’s total wealth at $3.83 trillion. Despite an increase of $277 billion on a year ago, the overall share was down by 1.8 per cent from June 2020.
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, while direct investments now represent 12.9 per cent with a value of $1.39 trillion.
An influx of savers saw Australia’s traditional banking sector become the fastest-growing category, up to 23.8 per cent of the nation’s wealth 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.
Explaining the impressive overall growth of the financial sector, Roy Morgan’s CEO, Michele Levine, pointed to the government’s hefty stimulus packages, which have helped carry the sector amid an economic downturn.
“For many Australians, the government stimulus went straight into the bank account with a lack of options for spending it with international (and, for much of the time, domestic) borders closed and travel restricted,” she said.
Ms Levine opined that much of the predicted damage to the Australian economy did not occur as a result of the government’s aid, which ultimately helped the financial services boom.
“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,” she added.
Not only is the market showing resilience, but Ms Levine believes history could repeat itself post the current lockdown restrictions.
“Although the next few months are set to be tough ones for many Australians forced out of work by the lockdowns, there is an optimistic view that once the vaccination thresholds are reached towards the end of this year, the economy will quickly recover from this ‘third wave’ of COVID-19,” she concluded.
RELATED ARTICLES
About the author
About the author
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
