Fintechs grapple with internal challenges
Viability of business models and suitability of systems are no longer major internal challenges for Australia’s fintech companies, but are still present issues, according to the 2017 EY Fintech Australia Census.
The census has found the amount of Australian companies who considered usage and vitality of business models an impediment in the way of expansion has dropped since 2016.
Parallel to this, having suitable systems and processes in place, once a cause of consternation for fintechs, was now also a lesser issue than 12 months ago.
Ernst and Young and Fintech Australia’s annual census, based on survey results from 166 companies found a quarter still held concerns over their business model, down 12 per cent from 37 per cent last year.
More than a quarter (31 per cent) of fintech firms still believed that suitable systems and processes were yet to be fully acquired, down from 47 per cent in 2016.
“Coupled with an impressive average year-on-year revenue growth, there have clearly been some great strides made in the last year,” EY fintech adviser, Meredith Angwin, said.
“With the 2016 census, we saw a snapshot of a sector that, while growing, was still in its relative infancy. This year’s results though show that Australian fintech has really started to come of age.”
AUTHOR
Hope William-Smith
Recommended for you
Legal profession-focused super fund legalsuper has partnered with Link Group to launch a cloud-based digital platform.
The number of investments being made online has fallen significantly amid the market downturn and the threat of rising inflation and interest rates.
Fintechs will now have a regulatory sandbox that will allow them to test new products and services for 24 months without obtaining a financial services or credit licence.
Publicly-listed platform provider Netwealth has continued to assert its leadership – this time in terms of digital wealth applications.
