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
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
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
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
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
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
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
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
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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