A census released at the Collab/Collide Summit in Melbourne revealed that the fintech industry in Australia is thriving and growing at a fast rate, 200% annual median revenue jump. In addition, the EY Fintech Adoption index found that Australia has surpassed Hong Kong, Singapore and the United States to have among the best fintech market penetration in the world. Australia’s fintech industry has established a strong foothold in the country as it is increasingly becoming the first choice of small business funding financial services for many Australians. The fintech industry has not only grown within the country but is rapidly expanding internationally which points to further small business funding growth.
The EY Fintech Australian Census is the first fintech industry census in the world, and the only report of its type in Asia. This represents a significant step in the development of the fintech industry as growth can now be analyzed year over year. Furthermore, it serves to highlight and quantify its potential. Some of the most important findings reveal that:
- 54% of companies nominated expanding overseas (or expanding their existing overseas operations) as a priority for the next 12 months – up from 38% in the 2016 census
- The main targets for expansion are the United Kingdom (49%), Singapore (40%), United States (38%), New Zealand (27%) and Hong Kong and Canada (22%).
- About a quarter (24%) of the fintech companies surveyed are reporting that revenue growth increased by more than 700%.
As Fintech’s are establishing a stronger foothold in the market they continue to face some barriers that have limited their growth:
- 40% report a lack of collaboration with banks and other financial institutions as an impediment, hence lack small business funding or government grants
- Shortages in the talent pool in sales, marketing and engineering.
- Gender disparity in the field is significant, with the proportion of female fintech employees at 24% in 2017
- Favorable legislation is a main area of concern as fintech companies require government assistance to fuel further growth and in areas of small business funding.
Year over year we can see that fintech has gained traction in Australia and has progressively expanded overseas. Like most industries, challenges exist but as more and more people adopt the new reality of fintech barriers will cease to exist.
InvoiceInterchange is amongst the upcoming fintechs that are revolutionizing traditional finance and small business funding. As one of the leading fintechs, it serves to support local businesses with simple and quick invoice financing. Engage with our invoice financing services and grab the opportunity to grow your own business today!