Despite difficult economic conditions, a net 104 new Australian fintechs emerged in the last 15 months according to new data from KPMG.
Most of the growth was in blockchain, cryptocurrency and lending while the number or regtechs, wealthtechs and analytics startups decreased.
Today KPMG released its Fintech Landscape 2020, describing the last 12 months as a bumper period for fintechs. The report shows a total of 733 currently active fintechs, up from 629 when the landscape was last released in September 2019.
- Source: KPMG Fintech Landscape 2020.
The category with the largest increase was Blockchain and Cryptocurrency, jumping 153 per cent from 2019 with the addition of 49 new fintechs focusing on immutable digital records and currency.
The number of neobanks doubled from five to 10 despite delays to APRA’s licensing process, which is expected to restart from March next year, and the loss of Xinja last week.
While most categories of fintechs increased since September 2019 some did fall, including three less crowd funding fintechs, and one less in each of regtech, wealthtech and analytics.
“Despite the impacts of COVID-19 on the economy, increased digitisation across financial services and new customer behaviours have created new opportunities for innovation,” said Daniel Teper, National Fintech Lead, KPMG Australia
“The overall impressive net growth in the number of fintechs illustrates both the robust market dynamics and a strong support for the fintech sector in Australia.”
Teper said the continued evolution of Australian fintechs will include the repurposing and recategorisation of some businesses as they look to mature their revenue strategies.
“In addition, we’re seeing rationalisation within some categories, a trend we expect to see more of as the market continues to mature and category winners, and losers, emerge.
“We are also starting to see increased levels of corporate M&A activity, as traditional players show an interest in fintechs product innovation, technology and market proposition and to help pivot their core businesses.”