Aussie fintech investment up 252%
Investment in Australia’s fintech sector “smashed previous records” last year, jumping up to $2.9bn.
The KPMG data revealed a significant contribution to this figure came from the investment in neobank Judo.
“2019 was a break-out year for Australia’s fintech ecosystem, with large-scale mergers and acquisition activity driving the result alongside significant venture capital investment in emerging players,” said Dan Teper, KPMG head of fintech in Australia.
“There is a depth of innovation across multiple areas of fintechs, including banking and lending, proptech, insurtech and superannuation – and this is increasingly being recognised by investors and corporates.
“As we move forward, we would hope to build on the momentum of 2019, especially as Australia further develops its digital banking regime and open banking regulations.”
KPMG has predicted crossover between financial services and non-financial services groups in 2020, with “big techs” like Google to look for ways to integrate financial services into their offerings to their customers.
As such, there is a chance the “unbundling of financial services” seen over the past few years may start to reverse as fintechs and traditional financial institutions try to provide more value and a seamless experiences to their customers.
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