Fintech investment reaches $2b
The number of Australian fintechs has more than doubled since 2017 with over 800 firms now in the market while investment in the sector has reached $2 billion.
According to KPMG, investments in the fintech sector was $2 billion in 2020, a rise of 250% on the previous year.
“This data shows the Australian fintech sector has not only a large variety of players with cutting-edge technological solutions but also strong growth and the ability to attract global investments,” KPMG said.
Most of the firms were consolidated in the payments space as two factors in Australia had created a “fertile ecosystem” for these businesses.
These were the fact that most payments in Australia were completed electronically and that Australians were accustomed to using advanced payments systems with their banks.
Only 27% of payments in Australia were transacted with cash, falling to 5% for those aged 19 to 39, compared to 73% in the Eurozone.
“This has resulted in the creation of fertile ecosystems for the proliferation of payment companies,” KPMG said.
“Australia, in the coming years, has the potential to lead the world in payment technologies. Some examples of successful Australian companies in the sector are Tyro Payments, Afterpay and Zip.”
Other sectors which stood out were SME lending, digital banking, and blockchain and cryptocurrency.
AUTHOR
Laura Dew
Recommended for you
Doubt has been cast on whether Minister for Financial Services, Stephen Jones, will be able to progress the Delivering Better Financial Outcomes reforms within a year.
The financial advice profession should be embracing career changers and mature students, according to two commentators, as well as targeting those new graduates.
With Insignia’s sale of Millennium3 expected to see 140 advisers moving over to WT Financial by mid-December, this could cause a shift in which licensee closes out the year with the most advisers.
A financial adviser has been banned from giving personal advice to retail clients until 2025 after the FSCP found there is a “real risk of harm” to the public’s confidence in the industry if he remains registered.
COMMENTS