Australia’s Fintech ecosystem is flourishing. It is now 5 times the size it was 5 years ago – with close to 600 fintech start-ups operating in Australia. And with this rapid expansion comes diversity– there are now 10 fintech subsectors, which have over 20 fintechs operating locally.
Fintech landscape snapshot
The current market landscape is dominated by those companies operating in the areas of investment, payments, and lending solutions. Close behind these are wealthtech and capital markets. But what’s exciting is the steady emergence of newer categories such as regtech, blockchain and insurtech.
So it is fair to say that fintech is the hottest pairing of technology and business since the dot.com boom and it is this emerging technology that is reshaping our financial services sector.
So what’s fueling this market explosion? Investment. Enticed by favorable government policy incentives particularly around tax reduction, investment in the sector has risen and continues to rise, KPMG reported that between 2012 and 2016, investment rose from $US53 million to over $US675 million.
In addition, the rise of several generations of digital natives and consumer appetite for product innovations to make transactions, banking, supply chain and compliance easier in both their personal and business realms, has created a huge opportunity to disrupt, experiment, and capitalise.
And perhaps one of the most striking developments to come out of the fintech blow-up is the rise of partnerships between large organisations and start-ups. These large and small, established and fledgling has enabled a symbiotic relationship, which harnesses the financial and market power of the larger company but has the start-up’s innovation and agility in product development and go to market speed.
Recognising and celebrating Fintech excellence
We are only a week away from recognising the outstanding talent and achievements of this industry and it’s potential to become the engine-room of economic growth in Australia at the 2018 Fintech Business Awards, of which Thomson Reuters is the proud Principal Partner.
Whilst Thomson Reuters is perhaps not an obvious identity in the fintech sector, we have much to offer a company as it transitions from start-up to Leviathan. We have a range of tax and accounting solutions for small to medium businesses. And as these businesses move into new markets and grow, so too will tax and regulatory obligations and the need to automate finance and tax functions will never have been so pressing.
So to all the finalists – we wish you well and look forward to celebrating with you at the Awards.