Australia's fledgeling fintech industry is coming of age, experiencing a tripling of median revenue and providing a genuine challenge to established banks, according to figures prepared by Ernst & Young.
EY's annual FinTech Australia Census - based on survey results from 166 fintech companies - finds finds that the nation's fintech ecosystem has blossomed over the past 12 months, with companies enjoying a 200 per cent annual median revenue jump.
The Census results closely align with another research report, the 2017 EY FinTech Adoption Index, which in June 2017 found that 37% of Australia’s digitally active population are now fintech users, compared to 13% in 2015.
FinTech Australia chair Simon Cant says the Census results illustrate that Australia’s fintech industry is increasingly becoming the first choice of financial services for many Australians.
“The fact that the industry has experienced a tripling in median revenue is a strong sign that fintech firms are acquiring customers and making strong inroads into the traditional financial services sector,” he says.
Nonetheless, significant challenges remain, with firms in the poll expressing conern about tax relief and government support, more transparent access to the country's New Payments Platform, talent shortages and achievement of gender diversity goals.
FinTech Australia deputy chair and Census founder Stuart Stoyan says the results provide a strong evidence base to advocate for policy and regulatory change.
“It’s become clear from this year’s Census that taxation reform, specifically around providing better access to research and development incentives and capital gains tax relief, and a mandated open financial data platform are key policy priorities for fintech firms around the country,” he says.