ECOSYSTEMS THE FINTECH TIMES
Australia’s booming fintech sector is growing at a time when other economies are still struggling with the impacts of Covid-19
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ustralia’s fintech industry is moving up in the global rankings, and now ranks second in the Asia-Pacific region and sixth in the world – making it an attractive destination for global fintechs seeking to expand or establish a foothold in the region. Home-grown fintechs are also expanding, contributing to a growing ecosystem known for innovation and rapid growth. Almost three-quarters of Australian fintechs are planning on
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entering an overseas market in the next three years, and one-quarter of Australia’s fintech companies are growing by more than 300 per cent each year. This demonstrates robust adoption and high demand for fintech solutions. Add to this a comprehensive free-trade agreement that will strengthen links between the UK and Australia, offering enhanced mobility for agile workforces – and you’ll agree the future for fintech in Australia is certainly looking bright.
investment specialist for the Australian Trade and Investment Commission. “It means new business models and use-cases will be created in financial services and other sectors such as energy and telecommunications.” Australia’s Consumer Data Right (CDR) framework puts Australia ahead in terms of open banking technologies. CDR went live for Australian banking in July 2020. As it’s progressively rolled out, consumers will gain the ability to share personal data
PRO-INNOVATION REGULATION
Almost three-quarters of Australian fintechs are planning on entering an overseas market in the next three years, and one-quarter of Australia’s fintech companies are growing by more than 300 per cent each year
Australian regulators are notably nimble, perhaps an advantage for a marketplace that is smaller than the US or the UK. A guiding principle is that fintech regulation should be an enabler, and regulators encourage fresh ideas in finance as seen in the buy now, pay later model pioneered in Australia. “Australia is building an economy-wide, open data framework – and this is having a profound impact on tech development,” says Gaurav Johri, fintech
among service providers in multiple sectors such as energy, insurance and pensions. “A productive relationship between the industry and government has been important for the success of Afterpay and the broader fintech sector,” says Afterpay’s director for public policy in Australia, Marty Gray. “This helps achieve our mutual ambition of making Australia a major global technology and financial services hub.” Afterpay (Clearpay in the UK) grew rapidly in this environment and was acquired by US digital payments giant Block Inc (formerly Square) in Australia’s largest ever corporate acquisition. It secured a £22billion deal only seven years after the company was founded, and five years after it was first listed on the ASX. Sydney-based Cover Genius adds to the billion-dollar fintech tally. Founded in 2014, it helps companies embed insurance into their online offerings. Bloomberg estimates Cover Genius is now valued at £555million, and Financial Times has declared it the ‘fastest growing company in the Asia-Pacific region’.
