Australia’s fintech landscapeThe surge in fintech activity in the country has been embraced by the country’s consumers. The fintech adoption rate has increased significantly over the past decade, and the number of users in Australia is forecasted to grow. New South Wales has retained its position as the fintech hub of Australia, with over half of all fintech companies in the country headquartered in the country’s most populous state. However, the reach of Australian fintech companies is not confined to the country’s borders; as of 2021, over half of the Australian fintech firms had customers outside of Australia and around 60 percent had employees overseas.
Banking on the futureThe number and value of venture capital deals in fintech startup companies in Australia exceeded all other sectors in 2021. Additionally, Australian fintech companies have attracted significant interest from investors worldwide. In 2020, neobank Judo Bank was the leading Australian startup with funding valued at around 1.5 billion U.S. dollars. Judo Bank’s business focuses on small and medium-sized business lending and it is one of the prominent challenger banks entering the Australian banking market. Investors in Australia are excited about the future of fintech in the country; this will likely advance the digitalization of the country's banking sector.
With a population that is open to embracing new technologies and an advanced fintech regulatory framework that promotes innovation and collaboration, Australia recently ranked sixth in the world in the global fintech ranking. Within the Asia-Pacific region, Australia now ranks second, making it a popular destination for fintech firms looking to expand as the global fintech industry continues to transform.