Fintech revenue growth surges: EY census
Local fintech start-ups are confident revenue growth will continue on the back of the banking royal commission and a majority are planning to expand overseas as more funding is pumped into the sector, although a mostly optimistic outlook is tempered by fears of a skills shortage.
Access to developer talent is a concern to almost half of the nation’s fintechs, who also want better access to the government’s research and development (R&D) tax incentives to drive growth.
The results are in the annual EY Fintech Australia Census 2018, generated from an online survey of 151 start-ups, which was released on Monday at FinTech Australia’s Intersekt festival attended by 500 people in Melbourne.
The census shows one in five fintech start-ups are profitable, more than two-thirds are now making revenue and four in five expect to grow revenue next year. The median revenue growth rate in 2018 at 125 per cent.
Two-thirds of fintech start-ups expect to increase employee numbers over the next year as the census showed more venture capital is being put into the sector.
Indeed, fintech received more funding than any other start-up category in 2018, with 70 per cent accessing private funding and two-thirds tapping commercial lines.
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