What is FinTech?
With about 400 fintech companies based in all Australian State and Territory capitals, Australia has one of the world’s most exciting and dynamic fintech industries. The majority of Australian fintech firms are founded or led by experienced financial services professionals, who are passionate about finding new ways to deliver financial services to the benefit of customers. Fintech companies provide a diverse range of product offerings for businesses and retail consumers internationally.
FinTech for Consumers
Fintech opens up a world of opportunity and choice for Australian retail consumers.
Fintech companies allows consumers to access innovative new products which are more tailored to their needs, along with often being quicker and cheaper.
Australia has one of the world’s strongest and most dynamic fintech marketplaces, largely based on the fact that financial services is Australia’s largest industry.
Examples of services provided by our members include:
• Automated financial advice
• Online whole-of-portfolio wealth visualisation and planning
• Lending marketplaces
• Same-day international transactions
• Contactless payments
• Fractionalised and crowd-sourced property investment
• Peer-to-peer lending
FinTech for Businesses
Some 70 per cent of fintech firms in Australia provide services to businesses.
Typically, these fintech firms have a better understanding of the needs of business owners, compared to traditional financial institutions, and therefore have filled market gaps.
For instance, some fintech firms have dramatically improved lending outcomes for small businesses, while others have?reduced the time taken for businesses to be paid for their products from weeks to seconds.
Other new fintech services provided by FinTech Australia’s members to businesses include:
• Business equity funding via syndicates or crowd-funding
• Automated digital and financial advice
• Fast and secure international and domestic payments
• Insurance risk management
• Cyber security solutions
Australian fintech: leading the world
Australia has one of the world’s most exciting and dynamic fintech industries. In fact, the Australian fintech industry is estimated to grow from a $250 million industry in 2015 to a $4 billion industry by 2020.
Australia is suited on the doorstep to Asia, which is increasingly home to the world's economic centre of gravity. This makes Australia a great location for companies wanting to establish their Asian regional headquarters.
Australian fintech companies are also keen to explore opportunities to grow into international markets, including through forming partnerships with overseas fintechs.
There are many reasons why Australia has such a positive fintech environment. This includes Australia’s:
• Secure and stable financial services regulations, couple with a desire by regulators and industry to work together to create a “fintech friendly” environment
• Strong credentials as one of the world’s leading wealth managers, being home to the 4th largest managed fund pool in the world
• Highly liveable State capital cities which attract global talent and are all home to growing fintech industry hubs
• Deep and experienced domestic financial services and ICT talent pools
• Strong links to all major fintech markets around the world, along with being a gateway to Asia
• World-leading adoption of new technology, such as contactless payments and smart phones.
FinTech Australia ecosystem map
In June 2017, FinTech Australia released its first member ecosystem map, to help build domestic and international understanding of the nation’s fintech strengths and diversity, particularly in wealth generation and lending. The map lists 119 members of FinTech Australia, along with the nation’s key financial services regulators.
Investing in Australia
Austrade helps Australian fintech companies develop international markets and also assists with productive foreign direct fintech investment into Australia. A key Austrade export program includes its international startup landing pads for Australian companies wanting to expand overseas.Find out more
Working in Australia
A range of entrepreneurial and skilled worker visa options are available for people who want to come to Australia.
Australian fintech companies are experiencing skills shortages in areas such as engineering/development, user experience, sales and marketing.
Information about obtaining skilled and entrepreneurial visas in Australia can be found on the Department of Immigration and Border Protection website.
Australia is a great global test market for innovative new products
The Australian Securities and Investments Commission has a world-leading regulatory sandbox which allows companies to seek waivers or take advantage of exemptions to help launch their fintech product to market.Find out more