Our 2018 Census finds the Australian fintech industry continuing to mature and grow, becoming broader, more sophisticated and more confident.
Almost 70% of fintechs are at the post-revenue stage with healthy 2.25 times median revenue growth and 1 in 5 report being profitable. Conditions are set for further growth, with the advent of Open Banking and the potential for fintechs to grab consumer mindshare as incumbents deal with the fallout of by the Royal Commission. Fintechs are keen to partner to build their businesses, however incumbents remain difficult to engage with and slow to act.
Despite the prospect of overseas competitors entering the market, Australian fintechs believe they have a home-ground advantage and are positive about the industry’s outlook. They are also bullish about their own overseas expansion prospects, looking first to the UK, US and then Asia.
The overwhelming impression is of a rapidly maturing industry, that, given the right government support, has huge potential both here in Australia – and in other jurisdictions. But it will require continued effort on the part of all ecosystem players – government, incumbents and fintechs themselves – for our national industry to realise its potential.