The fintech sector in Australia is evolving at pace. Australian fintechs are more mature this year with a greater proportion having been in operation for more than three years compared to last year (31% and 20% respectively) and a greater proportion are now post revenue (71% and 57% respectively). They are also lean businesses, with the median number of employees being eight.
The rapid growth of the sector and its continued evolution is a strength, but the short tenure of many of the firms and the highly competitive global nature of the industry means there is also some fragility. It underlines the importance of having a well developed ecosystem in Australia to foster success and to help the industry realise its potential.
The continued growth of fintech ecosystems should be considered through the lens of the cities they are predominant in, with the greatest concentration being in Sydney and Melbourne.
The core areas of focus for the fintechs involved in the study are wealth and investment (30%) and lending (23%), which is not surprising given Australia’s strong financial services and superannuation industry. The end-customer profile is also broad, with the spectrum from B2C (55%) and B2B (71%) covered.
What is clear in interpreting the data and reviewing the stated proposition of many of the fintechs is that they do hold true to the characteristic of having a particular focus on a specific sub-segment of the financial services sector.