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A 15 Minute Guide To Entering The Australian Market

Alan Tsen
December 22, 2020

A 15 Minute Guide To Entering The Australian Market

A short presentation on entering the Aussie market for fintech startups.

Alan Tsen

December 22, 2020
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Transcript

  1. A 15 Minute Guide To
    Entering The Australian
    Market
    1 A 15 Minute Guide To Entering The Australian Market

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  2. About Me
    Alan Tsen, Investor &
    Consultant
    • Investor and consultant to FSIs
    • Chair of Fintech Autralia
    • Former founding GM Stone & Chalk,
    Melbourne
    • Member of ASIC's Digital Advice Panel
    • Founding CEO of Fintech Victoria
    • Former member of the Australian
    Treasurer's Fintech Advisory Panel
    2 A 15 Minute Guide To Entering The Australian Market

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  3. First some background
    on the Aussie market...
    3 A 15 Minute Guide To Entering The Australian Market

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  4. Australia is the
    Galápagos Islands of
    financial services
    4 A 15 Minute Guide To Entering The Australian Market

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  5. The Australian is a unique market
    • Highly concentrated markets across most significant verticals in
    financial services
    • Highly evolved financial services sector - faster payment (NPP), tap
    & pay, same day settlement
    • Highly reliant on financial services sector
    • Highly funded vertical
    5 A 15 Minute Guide To Entering The Australian Market

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  6. The Australian market presents
    many opportunities
    • Highly concentrated markets across most significant verticals in financial services
    • Many underserved markets with poor customer experiences
    • Highly evolved financial services sector
    • Good rails to work off
    • Highly reliant on financial services sector
    • Early adopters of fintech products
    • Highly funded vertical
    • Fintech is
    !
    6 A 15 Minute Guide To Entering The Australian Market

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  7. Why Now ?
    7 A 15 Minute Guide To Entering The Australian Market

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  8. The market is shifting fast
    • Consumer Data Right
    • Financial Services Royal Commission
    • Regulatory change - e.g. Enhanced sandbox, RADI, fintech bridge(s)
    • Everything is fintech (just not yet in Australia)
    • Growing desire by incumbents to partner, because they know...
    8 A 15 Minute Guide To Entering The Australian Market

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  9. The party is over
    9 A 15 Minute Guide To Entering The Australian Market

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  10. Practically, what does this mean?
    !
    Partnering
    • Incumbents are coming around
    (at different speeds) to partnering
    • Partnerships, banks as
    customers & channel
    partnerships can all work
    • Slightly accelerated by current
    climate
    !
    Challenging
    • Lots of lazy incumbents but they
    are deeply entrenched
    • Emergent behaviours are
    adopted fast (i.e. BNPL)
    • Growing opportunities in
    embedded fintech
    10 A 15 Minute Guide To Entering The Australian Market

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  11. Launching In Australia
    11 A 15 Minute Guide To Entering The Australian Market

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  12. Things to think through when
    launching in Australia
    • Pull vs push (pull is always better)
    • Network matters (especially for recruiting, regulatory and banking relationships)
    • Banks are slower than you think
    • Getting banked is harder than you think
    • The differences are subtle and they can matter - what works there, might not
    work here
    • It's a serious investment
    12 A 15 Minute Guide To Entering The Australian Market

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  13. Common pressure points
    • Regulatory issues
    • It's still slow, but this is now a well-trodden path now - so plenty of war stories
    • Banking relationships (2x what you're planning)
    • Painfully slow and for the most part end in "maybes"
    • Recruitment
    • Lots of talent. But still hard to find startup people
    • Network & community
    • Can be fast. However, is an investment that shouldn't be underestimated
    • Infrastructure
    • Still not easy to do all the things - e.g. no real BaaS provider in market (yet)
    13 A 15 Minute Guide To Entering The Australian Market

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  14. Under discussed
    Opportunities
    14 A 15 Minute Guide To Entering The Australian Market

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  15. Emergent Opportunities
    • Embedded fintech (i.e. Doordash)
    • Infrastructure - payments (issuance & acquiring side), BaaS, KYC/
    AML
    • Challenger banking is still an open game - no winners (yet)
    • CDR as the global standard for open data
    • Fintech adjacent opportunities - proptech, insurtech and regtech to
    name a few
    15 A 15 Minute Guide To Entering The Australian Market

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  16. Questions:
    Add questions to the
    chat. Happy to answer
    them.
    16 A 15 Minute Guide To Entering The Australian Market

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  17. Thanks For Listening
    Twitter: @alantsen
    Email: [email protected]
    Writing: fintechradar.substack.com
    17 A 15 Minute Guide To Entering The Australian Market

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