The study forecasts that the Australian fintech market will reach over A$4 billion in revenues by 2020 including A$1 billion in completely new added value to the nation's economy.

The standout figure concerns a potential loss of A$13 billion in aggregated revenues as the fintech sector strips A$10 billion in revenue streams away from the big Australian banks and contributes A$3 billion of new revenue to the financial services sector from 2015 to 2020.

Audrey William, head of research, ICT Practice, Frost & Sullivan Australia & New Zealand comments: “This disruption should be of serious concern to the Australian financial services sector. While fintech will not end traditional financial services, Australian fintech is in the development stage of the business cycle. The Big Four banks must react or face a large dent in future profit growth.”

The report suggests that Westpac is most engaged with new technologies to combat fintech disruption.

Saranga Sudarshan, research analyst, ICT Practice, Frost & Sullivan Says: “WBC opened an innovation lab in September 2014 and has already invested AUD50 million in companies throughout the fintech sector, with blockchain trials and mobile payments through its partnership with Android Pay to begin in 2016."

Commonwealth Bank comes in a close second with NAB and ANZ bringing up the rear.

"Whilst NAB and ANZ have developed strong engagement strategies, they have been late in committing resources compared to WBC and CBA," states the report. "The future growth of the Australian fintech sector will depend on how much the government chooses to favour the Big Four banks and keep the financial sector regulated against market volatility."