Disruptors’ dominate on FinTech100

  • By Elizabeth Fry

China continues to dominate KPMG’s annual FinTech100 list of the world’s leading fintech firms.

The list, which is a collaboration between the big four consultant, fintech innovators and H2 Ventures, includes the leading 50 established global fintech companies and the most promising 50 ‘Emerging Stars’.

China based Ant Financial took pole position on this year’s list, which saw five of the top ten positions held by Chinese companies.

However, Asia Pacific is on the rise, with 30 fintechs on this year’s list; while the UK and Europe, Middle East, and Africa dominated the Emerging 50 with 26 companies.

The US placed 19 companies on the full list, the most of any country, and three in the top ten.

Disruptors' dominate

Three Australian companies, Prospa, ZipMoney and AfterPay Touch, made the Top 50, either as a new entry or at a higher rank than their 2016 placement.

The UK is represented in the top ten by Atom Bank, the country’s first bank built exclusively for mobile, which placed at number eight on the list.

Ian Pollari, global co-lead of KPMG’s fintech practice, said: "Australia has once again demonstrated its strong fintech credentials with a very strong showing on the Fintech 100.

“Globally, disruptive fintech companies continue to dominate, representing strong interest from investors in business models and management teams that are seeking to radically change the industry paradigm.”

Those firms focused on disrupting traditional models represented 73 of the FinTech100.

“That said, the importance of ‘enablers’ - companies working in cooperation with financial services institutions to steadily improve products and services - has remained steady. Across the 2017 list, there are 27 such enablers; working across accounting, insurance and banking," Pollari added.

Attracting capital

Ben Heap, founding partner at H2 Ventures said: "Capital continues to flow into the fintech sector reflecting investor confidence in the future potential of these firms.

"Australian fintechs Prospa, ZipMoney and AfterPay Touch have all raised significant capital over the past twelve months.

“The Top 50 are a strong reflection of the diversity of fintech innovation. There are fintechs with lending and payment platforms, insurtech, digital banking and companies applying big data to fintech."

"Superior data and analytics capability notably will be a requirement to be a great financial services firm in the future, be it a traditional bank or a game changing fintech startup,” he added.

A KPMG report found that overall funding is on the rise for fintechs with the top 50 companies attracting US$4.8 billion in the last year alone and over US$27 billion in aggregate capital over their lifetimes.

The ‘Emerging 50’ have raised over US$600 million in the last year and just over US$1billion in total, since founding.

Open banking influences

Major funding rounds dominate investment - twelve companies on the Fintech100 raising over US$100 million, notably ZhongAn’s US$1.5 billion raise in conjunction with its recent IPO on the Hong Kong Stock Exchange.

The number of lending and payments related businesses continue to stand out in this year’s Fintech 100, with 32 and 21 respectively.

Importantly, it looks as though the open banking regulation in the UK, Europe, the United States and Australia has been a major catalyst for innovation, with 15 companies working in the related areas included on the FinTech100.

Seven Australian fintechs were represented on the Emerging 50: Airwallex, CoverGenius, Hyper Anna, Macrovue, MoneyMe Financial Group, Tic:Toc, and Valiant.