Australia’s fintech adoption rate is ranked fifth in the world, with an adoption rating of 37 per cent – up 24 per cent from two years ago. This puts Australia behind China (69 per cent), India (52 per cent), U.K. (42 per cent) and Brazil (40 per cent), but in front of countries like Germany (35 per cent) and USA (33 per cent).
This was one of the key findings from the EY FinTech Australia Census 2017, which profiles and defines the fintech sector.
According to the census report, the Australian fintech industry has matured over the past 12 months and is a sector now with much greater definition and structure.
The report estimates that the number of fintechs operating in Australia is now approaching 600, having more than doubled since 2015.
Key findings to emerge from this year’s census include:
- A greater proportion of fintechs have been in business for more than three years, pointing to greater stability and resilience.
- The proportion of Australian fintechs that are now in the post revenue stage has also increased, indicating that their products/service offerings are in demand and filling gaps in the market.
- What falls under the ‘fintech’ banner is now much broader (e.g. RegTech, cyber/digital security, data analytics) and firms that see themselves as ‘fintech’ are stretching far and wide into other tech industries (e.g. Agtech).
The EY FinTech Australia Census 2017 report notes that the most important determinant of this bourgeoning maturity for B2C firms is the level of receptiveness of the Australian public. The EY Fintech Adoption Index, conducted across 20 markets, saw:
- The global average for fintech adoption was 33 per cent.
- Australia ranked fifth with a 37 per cent adoption rating, putting it on par with other developed economies with similar financial systems (such as the U.S. and U.K.).
- This level of adoption shows that fintech is now at a tipping point where it is poised for mainstream adoption.
The report also found that Australian fintechs were internationally competitive, with two-thirds (63 per cent) of fintechs saying they will be able to compete internationally, while 45 per cent agreed that Australian fintech organisations will be able to ‘win’ against international peers.
However, in terms of local competition, there were mixed views on the perceived quality of domestically based organisations – 34 per cent ‘agreeing’ there was a lack of quality fintechs in Australia, with 38 per cent disagreeing.