Aussie fintech investment reaches $3 billion after 250% growth… but don’t celebrate just yet
Investment into Australian fintech has increased by a massive 252% year-on-year, according to a KPMG report, reaching a record high of $2.9 billion in 2019.
KPMG’s Pulse of Fintech H2 2019 report measures investment activity, including venture capital, private equity and mergers and acquisitions, and shows a huge jump for 2019, compared to $1.14 billion invested in 2018.
Dan Teper, KPMG head of fintech for Australia, called 2019 a “breakout year” for the Australian ecosystem, pointing to innovation in the banking and lending space, as well as in property, insurance and superannuation.
Indeed, there has been a flurry of activity in the Australian neobank scene over the past 12 months or so, with challengers Xinja, Volt, 86 400 and Judo all securing their full authorised deposit-taking institution licences and launching their early products.
We’re also seeing lending services such as Athena — noted in the report for its $70 million Series C round in October, while alternative superannuation providers are also emerging.
Australia is bucking the international trend here. On a global scale, fintech investment actually dropped slightly, from $US141 billion ($213.4 billion) in 2018 to US$135.7 billion ($205.3 billion) in 2019.
This could be read as a positive for Aussies. But, don’t celebrate too soon.
Leaders in this space have admitted that fintech here is just a little behind the curve. Could it be possible that we’re just catching up with the fintech boom in Europe and the US that peaked a few years ago?
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