More Australian fintechs focusing on lending

The proportion of Australian fintechs focusing on lending has grown to 29 per cent of all fintechs, up from 21 per cent last year.

According to the EY FinTech Australia Census 2020, nearly a third of Australian fintechs (30 per cent) are focusing on ‘payments, wallets and supply chain’, closely followed by lending (29 per cent).

These are the top two types of fintech services in Australia, largely driven by “a step change in consumer digital adoption and the rise of the buy now, pay later sector”.

The report, which consisted of 111 online surveys conducted with people working in the fintech industry during July-August 2020 and qualitative interviews with “fintech leaders”, found that the proportion of fintechs focusing on lending had risen on last year, when 21 per cent of fintechs said they were focused on this area.

The report reads: “Our census revealed that fintechs focused on payments are more prevalent, with lending and data/analytics the other top fintech sectors. This year has also seen a growth in challenger banks.

“These are healthy signs in an environment of extreme disruption and uncertainty, suggesting fintechs will survive this crisis and, with appropriate support, emerge invigorated.”

EY suggested that the proportion of fintechs offering loan services may rise as “neo-lenders will play an important role in providing loans” into the future.

To read more, please click on the link below…

Source: More Australian fintechs focusing on lending – Mortgage Business