Lending sector drives bumper year for fintechs
More than 100 fintechs have been added to the KPMG’s line-up of fintechs for 2020 led by an increase in the number of fintechs within the lending category.
The KPMG Fintech Landscape 2020 includes a list of all active fintech s headquartered in Australia.
It shows a total of 733 currently active fintechs, up from 629 when the landscape was last released in September 2019.
The report highlighted that the bulk of new fintechs were in the lending sector – both in consumer and SME lending.
Growth in blockchain and cryptocurrency-associated fintechs matches the general support and interest in the technology asset class across the past year.
The report also highlighted that activity remains in the neobank market despite APRA hitting the pause button on its licensing.
Insurtech keeps its momentum on the back of impressive growth in 2019
“Despite the impacts of COVID-19 on the economy, increased digitisation across financial services and new customer behaviours have created new opportunities for innovation,” KPMG Australia national fintech lead Daniel Teper said.
“The overall impressive net growth in the number of fintechs illustrates both the robust market dynamics and a strong support for the fintech sector in Australia.”
Teper also expects increased levels of corporate M&A activity, as traditional players show an interest in fintechs product innovation, technology and market proposition and to help pivot their core businesses.