Australian FinTech Landscape

Strong adoption as well as a supportive local eco-system likely factor for Australia’s buoyant FinTech industry. According to Ernst and Young, Australia experienced one of the largest growths in FinTech adoption globally (2015 – 2017), placing it as the top 5 market in 2017, only trailing behind China, India, UK and Brazil. This momentum is expected to continue with adoption rate increasing up to 43% this year.

Source: EY FinTech Australia Census 2017

FinTech Australia identified c. 250 FinTechs a year ago but this number has increased up to 600 in 2017. “Australia’s 600-odd FinTechs now employ over 5,000 people, are growing at over 200% per annum and are raising serious amounts of capital. Combined with the strong support from Federal and State governments and corporate partners, we have now reached a tipping point where there is enough maturity in Australian FinTech to enable a robust eco-system. We’re not there yet, but the foundation is built for Australia to take a leading regional role in FinTech.” said Stuart Stoyan, Deputy Chair FinTech Australia.

Based on a research conducted by Ernst and Young, up to 71% of FinTechs have reached post-revenue stage in 2017, with a median YOY post revenue growth of c. 208% and a median monthly revenue of $95,000. The next 12 months focus for FinTechs surveyed are to grow revenue (75%), grow employee base (63%) and overseas expansion (54%). Amongst the top markets considered for expansion include UK, Singapore, US, NZ, HK and Canada.

Confidence in the sector remains strong, as seen in the EY FinTech Australia Census Report where up to 63% agree that Australian FinTechs remain competitive internationally, whilst 45% agree that Australian FinTechs may be better than its international peers.

Snapshot of the Australian FinTech landscape:

  • Business based: NSW (54%), VIC (19%), QLD (12%), WA (9%), SA (4%), overseas (2%)
  • Age of company: 1 year or less (21%), 2 – 3 years (48%), greater than 3 years (31%)
  • Stage of start-up: concept (1%), pre-launch (14%), post launch/ pre-revenue (14%), post launch/ post revenue (54%), post launch/ post profit (17%)
  • Top 5 type of FinTech: wealth and investment, lending, data analytics/ big data, payments, wallets and supply chain, asset management and trading
  • Industry gender profile: male (76%), female (24%)
  • Top 2 talent shortages: engineering/ software and sales
  • Median monthly revenue (post revenue firms): $95,000
  • End customer profile: net business to consumer (55%), net business to business (71%)

Source: EY FinTech Australia Census 2017

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