AltFi sat down with Ian Pollari, KPMG’s global co-lead for KPMG's Fintech practice, to find out more.
With Airwallex raising $100m, Avoka selling for $245m, and even UK startups like Bud raising $20m from Australia’s ANZ banking group, all of a sudden Australian fintech is on the map.
Recent figures revealed that Australia’s alternative finance industry is now turning over $1.15bn a year, placing it ahead of South Korea.
“We’re seeing continued strong levels of investment into the fintech sector, highlighted by larger funding rounds, M&A deals and international investments into fintech.”
“Another trend is the diversification of the sector, with growth in regtech, data and insurtech. From a lending perspective, we are seeing greater interest and activity levels in digital mortgages.”
“Finally, the emergence of new neo-banks is another trend in the market, facilitated by APRA’s new licensing regime.”
“It is currently planned to go live in February 2020, so the major banks who are the first ADIs [Authorised Deposit-taking Institutions] to be captured are preparing for achieving compliance and operational readiness.”
Furthermore, it appears many other ADIs are preparing to participate earlier than mandatory compliance deadlines which augurs well for take-up.”
“There are clear differences between Australia and the UK regimes, so time will tell how Australian consumers and businesses respond to new propositions from banks enabled by Open Banking.”
“It is steadily growing, albeit there has been mixed success to date of tangible outcomes being delivered through partnerships.”
“The need to look offshore for growth.”
“Australia is a small market and only a few Australian fintech players have sought growth internationally, such as AfterPay and Data Republic.”