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Australia Fintech Market - Growth, Trends, Covid-19 Impact and Forecasts (2021-2026)

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  • 120 Pages
  • October 2021
  • Region: Australia
  • Mordor Intelligence
  • ID: 5458896

COVID-19 has brought challenging times for fintechs, with less CAPEX and less OPEX available to fund growth. It has imoacted Australian Fintech Market, Fintech Industry, Financial transaction, Technology Industry at high pace because of less trransaction at the very beginning of the lockdown imposed all over the country and foreseas. However, the crisis induced by coronavirus also creates a great opportunity to reshape and advance focus on fintech innovation and expansion as part of the post-COVID rebuild.
In 2019, 42% of fintechs reported improved relationships with banks and financial institutions; but in 2021 only 17% of fintechs feel the same way. Fintechs believe this moment of crisis will drive a step-change in consumer digital adoption and have adapted quickly to grasp new opportunities. This has resulted in a significant increase in consumer digital payments and transactions and the rise of the “buy now pay later” sector, which has expanded at pace, both here and overseas. Projection is seeming to be the Fintech as an industry that will lead Australia out of the COVID crisis – generating the jobs and investment the country needs for a swift economic recovery.
For 72% of respondents, capital raising efforts were negatively impacted by COVID, with 15% reporting no impact and 13% reporting a positive outcome. Interestingly, this impact was felt almost uniformly across pre-launch, post revenue and post profit fintechs. However, while equity funding was tough, investment from the Super area proved more resilient.

With over 800 fintech companies based in all Australian State and Territory capitals, Australia has one of the world’s most exciting and dynamic fintech industries. Australia’s payments regulation into the digital age, including a new regulatory class for Stored Value Facilities and a system-wide review; and building on our collaboration with key partner nations, including the UK and Singapore has made the Australian Fintech Industry grow with very high pace.

2020 has been a bumper year for Australia’s fintech startup eco-system, with more than 100 fintechs added since September 2019. It shows a total of 733 currently active fintechs, up from 629 when the landscape was last released in September 2019. An increase in the number of fintechs within the lending category supported by new players in both consumer and SME lending sub-sectors, as well as an increase in Buy-Now-Pay-Later providers. Growth in blockchain and cryptocurrency-associated fintechs matches the general support and interest in the technology asset class across 2020. The evolution of the neobank sector across Australia, even though a number of neobanks have been impacted by delays to APRA’s licensing process. Insurtech maintaining momentum on the back of impressive growth in 2019

Key Market Trends

Digital ID Framework Witnessing Growth in Australia Fintech Market

Fintechs are highly supportive of Australia adopting a Digital ID framework, similar to those already being implemented in Asia and Europe. Almost three in five (59%) of Census respondents believe a Digital ID would deliver cost savings, mostly in customer onboarding, to their organisation. Digital ID is an important step to enable fintech and consumer data right adoption, drive payments innovation and support the rapid digitisation of businesses occurring due to COVID-19. Current stumbling blocks are the need to agree on a Digital ID framework and build consumer confidence about identity privacy and control.
Asked about their ideas for the digital framework model, 64% see it working as a public and private model, also only private and only pub;lic responses are recorded.

Blockchain/ Cryptocurrency Witnessing Growth in Australia Fintech Market

Australia being home to the Blockchains serve as New Fintech Unit in Australia and also has introduced its new digital identity solution that will serve as a standalone Fintech division.. The ibcreasing investmensts in the c ryptocurrency is witnessing the average Industry growth of 88.2% projecting the growth in Fintech Market of Australia through out the Forecast period.

Competitive Landscape

The Australia Fintech Market is highly competitive and fragmanted as Australia's fast-growing, yet fragmented, digital payment landscape has started witnessing the first signs of market consolidation. As a five-fold increase in the number of fintech companies in just five years, the market in Australia also features a diverse range of startups entering many fintech subsectors across the country. Australia is currently home to more than 800 FinTech startups that cater to numerous clients and cover a broad range of services such as digital payments, alternative finance, wealth management and blockchain, among others. The common services offered by such e-wallet or payment platforms include transfer money, pay for online transactions, like bill paying and utility bills, and point-of-sale transactions through wireless transactions from mobile, food delivery, ride hailing, etc.​ Australia groups such as Paytron, Airwaleex, Zeller, many more have been focusing on innovating FinTech industry and leading the Australia Fintech Market to the new heights.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definitions
1.2 Scope of Study
4.1 Market Overview
4.2 A Brief on Internet And Smartphone penetration in Australia
4.3 Insights on Regulations And Industry Policies Impacting Fintech Market in Australia
4.4 Revenue And Funding Statistics Related to Fintech Landscape
4.5 Market Drivers
4.6 Market Restraints
4.7 Consumer Needs And Behaviour Analysis - From Fintech Perspective
4.8 Porter's Five Forces Analysis
4.9 Impact of COVID-19 on the Market
5.1 By Service proposition
5.1.1 Money Transfer and Payments
5.1.2 Savings and Investments
5.1.3 Digital Lending & Lending Marketplaces
5.1.4 Online Insurance & Insurance Marketplaces
5.1.5 Others
6.1 Market Competition Overview
6.2 Company Profiles
6.2.1 Zeller
6.2.2 Paytron
6.2.3 mx51
6.2.4 Athena
6.2.5 DiviPay
6.2.6 AirWallex
6.2.7 Judo bank
6.2.8 Afterpay Touch
6.2.9 Sofi
6.2.10 Wise
6.2.11 Stripe*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Zeller
  • Paytron
  • mx51
  • Athena
  • DiviPay
  • AirWallex
  • Judo bank
  • Afterpay Touch
  • Sofi
  • Wise
  • Stripe