According to national fintech association FinTech Australia, fintech has grown from a US$187 million sector to a US$3 billion industry between 2015 and 2021. As a result, the country has shot to the top of the 2021 global fintech rankings by data analytics company Findexable.
The number of new fintech firms in Australia has grown to 730, which include well-established unicorns like digital payments firm Airwallex, buy now, pay later company Afterpay, and insurance firm Cover Genius. These players have certainly been making a lot of noises. Airwallex, for example, raised US$100 million from a host of investors in November last year, while green energy-focused point-of-sale company Brighte bagged the same amount a month later.
Australia’s tech talent pool ranks highly
Placing eight in both the UN’s 2020 Human Development Index and Cisco’s annual Digital Readiness Index, which measures the skills needed to support digital innovation, people are undeniably the greatest asset of the country.
Australian government support
Not only has the Australian government supported fintech firms in the country, it has also helped startups looking to expand abroad. This is important as areas like Southeast Asia are set to experience remarkable growth. Case in point, the region’s internet economy is poised to double to US$363 billion by 2025.
Padiath, managing director for Southeast Asia at Zip, believes that Australian fintech companies are well-placed to take advantage of the opportunities around them. She notices that more than 80% of Australian fintech firms have been around for three or more years, a sign of maturity and growth in the sector.”We’ll definitely see more and more global fintechs coming out of Australia.”, she said.
By Lucy Ng