Australian fintechs represented in top 100

  • By Christine St Anne

Seven Australian fintechs have been included in the KPMG and H2 Ventures annual list of the world’s leading fintechs with neobank Judo Bank making the list.

Cross-border payment provider Airwallex was the highest ranked Australian firm at number 32, having risen from number 49 in 2018.

Judo Bank is was ranked number 33 and online payment service AfterPay Touch at number 47.

"Australia’s fintech ecosystem continues to perform well – with established players like Airwallex and AfterPay expanding globally and SME challenger, Judo raising substantial capital,” KPMG Australian national sector leader Ian Pollari said.

“We are also seeing a continued pipeline of new fintech innovators being launched in Australia – with all four of our local emerging list founded in 2017.”

On the top 50 emerging firms list, Australian fintechs included mortgage provider Athena Home Loans, voice analysis engine daisee, disaster response provider Sempo and smart receipts app Slyp.

As in 2018, payments and transaction companies dominated the list, representing 27 of the ranked firms.

Four of the seven Australian companies ranked are payments companies.

Australia’s favourable regulatory developments, such as the Restricted ADI License, are facilitating greater levels of competition and customer choice.

However, interestingly the report highlighted the emergence of fintechs in the insurance and wealth management sectors with businesses like the US’s Clover Health and Canada’s Wealthsimple making the list.

The Asia-Pacific region also dominated for another year, with Ant Financial (China) coming in first place for the second year running, followed by Grab (Singapore) and JD Digits (China).

China has dominated the Fintech100 for the past three years and this year is no different with three Chinese fintechs in the Top10 including Ant Financial, JD Digits and Du Xiaoman Financial.

The report revealed that an increasing number of fintechs are rapidly globalising across multiple jurisdictions such as AfterPay Touch.

Early fintech innovators with monoline product propositions are now diversifying to fulfill a greater set of mainstream customer needs.

Australia’s favourable regulatory developments, such as the Restricted ADI License, are facilitating greater levels of competition and customer choice.

The report also highlighted that almost every company on this year’s list is a beneficiary of a global policy shift to putting customers in control of their data, including Australia’s open banking and Customer Data Right legislation, “which is driving competition and allowing fintechs to access customer banking data to create faster, more personalised and innovative services”.

The report also highlighted that the companies in this year’s list have raised over US$18 billion in the last twelve months.  

Thirty-two companies on the Fintech100 have raised at least US$100 million in the last twelve months alone and the average capital raised by the top 10 companies in the past 12 months is over US$1.25 billion.

Significant venture investors in fintech companies include Sequoia Capital and SoftBank, together with strategic investors such as Alphabet (Google’s Holding Company), BBVA and Tencent Holdings.

However, closer to home, a recent report launched at the Intersekt conference in October revealed that Australian fintechs are confronting challenges around capital raising.

The list were selected following extensive global research and analysis based on data relating to five factors including: total capital raised; rate of capital raising; geographic diversity; sectorial diversity and the X factor – that is the degree of product, service and business model innovation – applied only to those firms who made the top 50 emerging list.