Why fintech is growing in Australia — and is an ideal market for testing new ideas

Sydney, Australia’s most well-known city, is not only a hot tourist destination for backpackers and Europeans — it has also earned itself the title of “Australia’s Fintech Hub”. In recent years, Sydney has taken the lead in both Australia’s fintech and startup scenes, with many fresh-faced companies making significant waves in recent years at home and abroad. So what is happening down under, that’s resulting in such growth in the fintech space? And why is it centred mostly in Sydney?

Overall, there are said to be 629 fintechs active in Australia. Investment in the Australian fintech sector has followed a trend globally, with $101M investment activity recorded in the first half of 2019, according to the most recent KPMG Pulse of Fintech report. Yet with the largest city population of the nation, Sydney is one of the top cities for economic opportunity, despite being a rather expensive destination — and has continued to prosper, due to its growth-prone business environment (see also why Sydney is great for startupshere).

As Australia’s financial capital, with a $60 billion financial services industry, the city has also been leading the way for startups — hosting the first dedicated space for fintech entrepreneurs, Tyro Fintech Hub. According to Australian FinTech, Sydney is home to over half of Australia’s fintech companies, though its not alone — with competition now rising in the thriving fintech scene in Melbourne in recent years, bringing more attention to this growing industry on the world stage.

Read more in our Startup Colors Magazine on medium.

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