Financial services now number one

Financial services has overtaken mining and manufacturing as Australia's fastest growing industry, according to a report.

Indeed, while other industries slow down in the growth stakes, financial services is one of the few that is continuing to boom year on year, the most recent Financial Services Council (FSC) and UBS Global Asset Management State of the Industry report shows.

It now accounts for nine per cent of GDP, according to the report, contributing $130 billion to the economy annually and employing 400,000 people.

"Yet financial services it is still to be recognised as an industry in its own right," FSC CEO John Brogden said.

Brogden said there are a range of opportunities for financial services, particularly overseas, but first we need a better understanding of what motivates people to invest in vehicles like self-managed superannuation funds (SMSFs).

According to the report, the control users have over SMSFs and the high cost of industry and retail super options has been behind the recent burst of SMSFs.

The report also drew attention to export opportunities in the financial services realm, which grew by 43 per cent in 2012-13 − from $2 billion to $2.9 billion.

"Australia has a real expertise in financial services, particularly in funds management and superannuation that is highly regarded around the world," Bryce Doherty, Head of UBS Global Asset Management in Australia, said.

"There is a huge opportunity for us to both export our investment expertise offshore as well as enable access for Australians to international investment opportunities."