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.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.