A short presentation on the Australian fintech ecosystem, written for the fintech startup looking to enter the Australian market. Packed full of insights into the market and what you should be looking out for when planning your entry strategy.
The Australian Fintech
1 The Australian Fintech Landscape
• Angel investor and consultant
• Deputy chair of Fintech Australia
• Member of ASIC's Digital Finance
• Former GM of Fintech Victoria
• Former GM Stone & Chalk, Melbourne
• Former member of the Australian
Treasurer's Fintech Advisory Panel
2 The Australian Fintech Landscape
Let's make this a conversation! Add
your questions to the chat and we'll
try to answer them as we go.
3 The Australian Fintech Landscape
First, let's do some
4 The Australian Fintech Landscape
Market Structure And
• Highly concentrated across all significant
verticals in financial services, with the big 4
• Well banked country with most people
having multiple accounts ("People rarely
close accounts, they just open another one").
• Australia has one of the fastest growing
fintech adoption rates globally (EY Fintech
• Other: High smart phone penetration,
ubiquitous internet coverage etc.
5 The Australian Fintech Landscape
• Well calibrated and clear. But, don't
confuse this with fast!
• Importantly, there is strong government
interest in making Australia a more
fintech friendly jurisdiction - eg.
Sandbox regime, RADI and Consumer
Data Right (CDR).
• The ecosystem is now dense enough
that many types of fintech products
have been seen by regulators.
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What Does This All
Mean For Fintech?
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Vibrant And Growing
• More investment and rising interest in
Aussie fintech startups.
• Some breakout success stories:
Afterpay, Zip, AirWallex.
• In terms of verticals: Payments (30%),
lending (29%), infrastructure (22%) and
• In terms of customers, B2B dominates
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Why Now ?
10 The Australian Fintech Landscape
The Market Is Shifting,
• All the usual global fintech trends also at play
• Consumer Data Right: first step in building a
• Financial Services Royal Commission: trust
• Regulatory changes: Enhanced regulatory
sandbox, RADI, fintech bridge(s)
• "Everything is fintech" (just not yet in Australia)
• Growing desire by incumbents to partner,
because they know...
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The Party Is Over
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Practically, What Does This Mean?
• Incumbents are coming around (at
different speeds) to partnering.
• Partnerships, FSIs as customers
& FSIs as channel partner can all
• Slightly accelerated by current
• Lots of lazy incumbents but they
are deeply entrenched.
• Orthogonal attacks can work (eg.
• Growing opportunities in
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So You Want To Launch
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Common Pressure Points
• Regulatory speed
• It can be slow. This is now a well-trodden path, so plenty of tribal knowledge out there.
• Banking relationships (3x what you're planning)
• Painfully slow and for the most part and time-consuming.
• Still not easy to do all the things - e.g. not many BaaS/aggregators in market (yet).
• Lots of talent. But still hard to find experienced startup operators.
• Network & community
• Important in any market. An investment that shouldn't be underestimated.
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• Embedded fintech and generally
• Challenger banking - no winners (yet).
• CDR as the global standard for open
• Fintech adjacent opportunities (eg.
proptech and regtech).
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Our Thoughts On...
Drop into the chat the verticals you'd like to
hear our thoughts on. We'll start with...
• Challenger Banks (Consumer & SME)
• Superannuation (Similar to 401k)
• Infrastructure (BaaS, Payments, etc)
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Thanks For Listening
Email: [email protected]
19 The Australian Fintech Landscape