Australia FinTech Report 2021 – By MEDICI

With over 550 active FinTech companies, Australia is one of the hottest FinTech hubs with the most prolific FinTech landscape in APAC, outside China and India. Australia ranks fifth among countries with the highest number of FinTechs startups founded since 2015 and has a 58% FinTech adoption. MEDICI’s latest report is a 44-page comprehensive study titled ‘Australia FinTech Report 2021.’ This article shares some snippets from the report.

FinTech Funding Trend in Australia 

From January 2018 to May 2021 (the period considered for the report), the sector received more than $2.67 billion in investments. MEDICI’s analysis of the market over the past few years suggests steady growth in FinTech funding in the continent between 2018 and 2019. Interestingly, growth in funding was unaffected by the COVID-19 pandemic, and the trend continued in 2020. Many FinTech hubs, however, registered a decline in funding received by FinTechs. The average deal value rose from $7.5 million in 2018 to $19.1 million by the end of 2020, highlighting the increasing maturity and investors’ faith in the market. This trend also indicates that the FinTech industry will continue to see investors’ support in the coming years.

A detailed analysis is available in our new Australia FinTech Report 2021. Access the full report here.

FinTech IPOs

The FinTech narrative in Australia has certainly evolved from disruption to collaboration, resulting in the high valuation of existing companies. The past six years were exciting for venture capitalists as they were armed with Australian FinTech investments in their portfolios. A wave of FinTech IPOs has emerged over the past couple of years. 2019 was an interesting year as five FinTechs went public. The COVID-19 pandemic, however, reduced the number of FinTech IPOs in 2020. We have analyzed 21 FinTechs that have embarked on their IPO journey over the past six years. Of these, eight belong to the Lending segment and five belong to the WealthTech segment.

A detailed analysis is available in our new Australia FinTech Report 2021. Access the full report here.

Active Investors in Australia

Australia is witnessing an influx of investment from both international and domestic companies. Large venture capitals such as Sequoia Capital and Abu Dhabi Capital Group and incumbents such as ANZ Bank, Westpac, and Credit Suisse are gravitating toward Australian FinTechs.

A detailed analysis is available in our new Australia FinTech Report 2021. Access the full report here.

CDR and Open Banking

The Consumer Data Right (CDR) empowers customers to share their financial data with the banks they choose. In addition, the CDR provides users the right to share their data with multiple providers, enabling them to easily switch providers, compare products, and explore new products and services. Currently, only the top four banks are mandated to provide account and transaction data; other banks are expected to follow suit by February 2022.

About the Report

Australia FinTech Report 2021 is a comprehensive study based on MEDICI’s proprietary FinTech data on thousands of startups, deep market intelligence derived from years of tracking the FinTech industry, and secondary research that was refined through brainstorming sessions and in-depth interviews with segment experts to extract valuable market signals from the noise, identify market trends, and develop points of view.

What More to Expect From Australia FinTech Report 2021

Grab your copy of the full report here.