Fighting-fit Aussie fitness industry invites fintechs into its corner

The health and fitness industry has become a behemoth that is showing no sign of slowing down, with reports from 2020 noting that Australians were spending an estimated $8.5 billion on fitness services and equipment annually and the fitness industry alone contributing $3 billion to the Australian economy.

The health and fitness industry has become a behemoth that is showing no sign of slowing down, with reports from 2020 noting that Australians were spending an estimated $8.5 billion on fitness services and equipment annually and the fitness industry alone contributing $3 billion to the Australian economy.

From 2014 to 2019, the fitness industry experienced growth of 4.9%, with a further predicted annual growth of 3.7% to the year 2024.

With this has come an explosion of exercise-based companies, of all shapes and sizes, across a wide range of health and fitness disciplines. And they are turning to fintech innovations to reach a growing online customer base.

One example is bim, a virtual gym network start-up, which launched a unique platform earlier this year. The company developed an all-in-one mobile app that combines management, video communication and fintech to help coaches operate and grow their online businesses.

Specific features of bim’s single mobile platform include the ability to create virtual gyms, organise live fitness sessions, receive payments and manage revenue.

And let’s not forget ‘wellness’ either, which is now a global US$4.4 trillion industry in its own right.

The wellness market seems to be largely untapped, with growth potential and innovations happening in the fintech space.

Indeed, banks and insurance providers themselves could soon start to offer rewards for keeping a fit and active lifestyle.

FinFit is one such example. The company has a wellness banking app, FinFit 2.0, that embeds banking and financial services into its platform. Consumers can earn fitness rewards points that can be redeemed for various services such as discounts for insurance premiums (should you purchase through the bank).

During the lockdowns of 2020 and 2021, an abundance of at-home exercise solutions appeared. With everything opening back up in 2022, there were a number of technology innovations based on changing consumer needs and a changed world.

This has led to trends in meditation and mindfulness, workplace wellness technology, better and smarter wearables, home fitness technology and even AI personal trainers.

Platforms such as Gympass combine fitness apps with gym memberships and classes for employers to offer their staff, while apps like Zevo Health work with teams that are office-based or working from home and integrate with wearables and fitness platforms.

These platforms are giving customers more flexibility when it comes to personal health and fitness, offering greater access to find local gyms or trainers, easy payment systems, class scheduling and much more.

The online fitness market is set to continue its growth, at a compound annual growth rate of 30% until 2026.

Past performance is not a reliable indicator of future performance.

Sources: 

 

 

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