Financial services adding more to economy than mining
Friday, 26 February 2016 1:05pm
By Mark Smith  |  In Economics

Financial services contributed more to the economy than any other industry in the 12 months to 30 September 2015, according to a joint Financial Services Council (FSC) and UBS report.

Figures in the second annual State of the Industry Report show that financial services sector added $141 billion to the economy or $5,881 for every Australian. The industry exceeded all mining activities by $532 million, manufacturing by more than $40 billion and healthcare and social assistance by more than $35 billion.

The report also shows financial services has been Australia's fastest growing industry over the past two decades. At 9.3% of the national economy, it is larger than mining, agriculture or manufacturing. Financial services is a major employer in the Australian economy accounting for 3.8% or 451,000 Australian jobs of which 52% are women.

The report contains a comprehensive summary of the financial services industry covering key sectors of superannuation, life insurance, investment, financial advice and trustees.

"The FSC-UBS Report State of the Industry Report shows financial services makes a significant contribution to Australia's economic and employment growth," FSC chief executive Sally Loane said.

Bryce Doherty, head of UBS Asset Management, Australia said: "This report highlights a potential opportunity for innovative financial services firms to increase exports of financial services, which are currently only 3.5% of the $2.6 trillion in funds under management, but also the important role that the industry must play at home in providing clarity and simplicity for all Australians' futures.

"Australia has world class fund managers who understand the need for the industry to continue to develop innovative, flexible and transparent products that help Australians fulfil their current and future financial needs.

"Alarmingly, recent surveys have indicated that over half of non-retired Australians consider it is likely that they will not have enough money for a secure and dignified retirement. It is essential that the finance industry works with government to provide clarity and incentives for Australians to ensure the number of future retirees requiring tax payer support is reduced to a minimum."

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