There Are Now More Than 700 Fintech Companies in Australia
Over the course of the last year, Australia has witnessed more than 100 new Financial Techs, or FinTechs, show up on the scene. Blockchain technology, and lending applications were among the top of the market entry list. In September 2019, KPMG, a professional services firm, examined Australia’s FinTech market, when less than 630 FinTechs remained active around the country. Unprecedented economic challenges have been posed by a sudden increase over the last year, as there are currently over 730 Financial Techs (according to a recently published story).
Daniel Taper, a National FinTech Lead at KPMG Australia, remarked, “Despite the impacts of Covid-19 on the economy, increased digitisation across financial services, and new customer behaviours, have created new opportunities for innovation”.
Strained cash flow has undoubtedly been one of the most impactful challenges presented by the Covid-19 crisis, paving the way for the quick growth of lending apps. It’s no surprise to observe FinTech apps jumping upwards of 30%, especially lending apps targeted toward small businesses, in a day and age where many businesses are desperate to liquidate. However, blockchain space has observed the biggest jump, with 49 new entrants recording an increase of 150% over the course of 12 months.
As a possible alternative to gold, cryptocurrency has emerged offering a hedge against inflation. A 6% jump, for over 150 active companies, has allowed the payments landscape to remain dominant. The influence gained by FinTech is made more apparent by the sheer growth in InsurTech, capital markets and Neobanks.
Opportunities for Investment
Consumers aren’t hesitating to jump on the bandwagon either, taking note of the impressive net growth FinTechs have experienced in the last year, alone. The Australian FinTech sector has certainly received strong support, with more than 50% of consumers utilising one or more of the services set forth by FinTech.
And while Covid-19 has influenced the transition from in-person business to online, we continue to see the intensifying demand for the ability to manage finances digitally. According to a 2019 study, it’s been revealed that Australia was home to 7 of the top 100 worldwide FinTech companies. Investor interest continues to spike on a daily basis, and the market is poised to strengthen further.
As it stands, KPMG is among the most active players of Australia’s FinTech scene. In a move that country CEO Gary Wingrove described as “strategic and timely”, KPMG acquired Markets IT early on in the game, back in 2016. This acquisition was surpassed only by the addition of a global FinTech matchmaking platform, Matchi, the following year. KPMG has built its own capacity in the space, and currently facilitates FinTech growth on a local, and worldwide scale. KPMG Australia operates a 12-week program known as Mutuals FinTech Accelerator. This comprehensive program puts the country’s most progressive mutual banks in contact with promising startups, in order to harbour strong, professional relationships. Teper himself has even taken on the advisement of myriad mergers, and acquisitions in the space.