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Australia’s fintech sector creates jobs, raises funds and looks to overseas markets

According to the new EYFinTech Australia Census 2021, the Australian fintech ecosystem is a prominent hero throughout the COVID-19 pandemic, fins preparing for record investor financing, new job creation and international expansion. You can see an increase in the number of techs.

This year’s Census, a collaboration between Australia’s Ernst & Young and FinTech Australia, co-sponsored by the Austrade Agency, dramatically increased the proportion of FinTech that met or exceeded funding expectations (2021). 52%, 57% in 2020), the founder’s reliance on funding is low and the amount raised is high.

2021 EYFinTech Main findings from the Australian Census

Alleviating funding concerns and signs of maturity

  • Australia’s fintech trading and financing is currently valued globally, with 44% of companies raising more than $ 10 million and 14% raising more than $ 100 million so far.
  • 88% of Australian fintechs aged 3 and over and 81% of fintechs aged 2 and over are now profitable, another promising sign of continued maturity and growth in the local sector.
  • The negative impact of the COVID-19 pandemic on FinTech financing has dropped significantly from 72% in 2020 to just 49% this year.
  • However, more than half (57%) of survey respondents who tried to raise money said they were still struggling to find the right investor.

Further evidence of global growth:

  • 72% of FinTech plans to enter or expand overseas markets within 3 years, and 60% plan to do so within the next 12 months.
  • 41% of FinTech after revenue reports that it has more than 500 customers.
  • The sector continues to create new jobs during the pandemic, with 67% of FinTech having more than 10 employees (up from 59% in 2020) and 21 full-time employees in the new central. Has a value (up from 10 in 2020).
  • Four in five (80%) of the survey respondents said that Australian FinTech is currently internationally competitive, but in 2019 64% believed it would be the same.
  • In the last 12 months, 88% of FinTech’s overseas revenues have created new jobs as a result.

Need for additional government support and talent concerns

  • Two in three FinTech (66%) find it more difficult to attract qualified or qualified personnel in Australia, and 78% have easier access to skilled immigrant visas. I want it.
  • As in the last few years, those with engineering and software skills have proven to be the most attractive of those who have experienced the challenge of attracting the right people (62%), followed by Product management (31%) and data engineering / data science (30%).
  • One in eight (12%) FinTech has received an export market development grant in the past, and an additional 15% plan to apply for the grant.
  • 42% of FinTech have successfully applied for R & D Tax Incentive (RDTI) and 11% are applying. 78% say access to RDTI influences decisions to do R & D in Australia. Eighty percent say they can improve business sustainability and growth by making RDTI more accessible.
  • New Zealand, which recently doubled its R & D incentives, jumped to the top of the list of preferred markets for Australian FinTech to expand internationally for the first time.
  • 39% of Australian FinTech surveyed have capital in the sector by changing policy settings and tax incentives for the Early Stage Innovation Company (ESIC) and / or the Early Stage Venture Capital Limited Partnership (EVCLP). We believe we can increase the inflow.

EY Oceania FinTech Leader and EY Asia Pacific Payment Leader Meyram said: We will enter overseas markets within the next three years, with 60% planning to do so by the end of next year. “

“In post-pandemic rebound races, a skilled visa program and employee retention system will undoubtedly help FinTech in Australia grow and attract new talent, but the sector is attractive in an increasingly competitive talent environment. To continue to be, we need to address other issues related to diversity and inclusion. “

“To maintain Australia’s position as a rising star on the global fintech stage and keep Australia’s innovations and talents ashore, we need to build a globally competitive growth path that is meaningful to Australia’s startup sector. There is an increased certainty about incentives, better coordinated collaboration and a strong move to drive industry diversity, all building a world-class fintech export market and Australia’s premier international technology. It helps to attract companies. “

Rebecca Schot-Guppy, CEO of FinTech Australia, said: Faster access to solutions and payments. The COVID-19 pandemic has accelerated the need for companies to adopt digital models, fostered consumer-online financial relationships, and accelerated FinTech innovation. Today, all consumer businesses require digital payment capabilities, which expands FinTech’s market for support. “

“Other recent market changes, such as open banking, have had a positive impact on this sector. Only 7% of the fintechs surveyed are already Certified Data Recipients (ADRs), but an additional 25%. We plan to follow suit and further plan to connect through intermediaries, which will allow the industry to converge and establish established financial services institutions, big tech, retailers and other non-traditional Collaboration with other players will be strengthened. “

“This year’s census has improved gender diversity across FinTech, with 35% of all employees being women (up from 29% in 2020). Importantly, the census said We also found that 26% of the leadership position is now occupied by women. These are positive results, but we will do it as a sector to further promote diversity and build a truly comprehensive sector. There’s still more to do. Nearly one-third of survey respondents were unable to provide estimates of their diversity profile, but an average of 25 employees with culturally and linguistically diverse (CALD) backgrounds. To drive innovation, we need to build and continue to expand a support ecosystem that encourages participation from diverse talent pools. ”

Maria Forner, a leader in EY Private Oceania’s start-up and entrepreneurship, said: Now is a crucial time to support structural modernization of the economy and increase investment in innovation through key business and investor incentives that help attract talent, innovation and capital. “

“The COVID-19 pandemic has significantly accelerated digitization, greatly eliminating geographical constraints. The sector is aware of other markets in the region, such as Singapore and New Zealand. In the market, launchpads for start-ups focus on overtly attracting more innovation and employment. In fact, about three-thirds of Australia’s Fintech looking to expand internationally. 2 is the main type of assistance they value, saying it helps to understand the regulatory environment (69%) and government support and funding to expand abroad (61%). In addition, Australian Fintech Almost three-quarters (72%) strongly support increased access and support the diversity of overseas lunchpads. “

“The trust of local entrepreneurs and investors depends on maintaining a stable, globally competitive regulatory, tax and incentive framework. The COVID-19 pandemic has prompted the government to invest, We have introduced various incentives, incentives and cash grants to help innovate, retain and attract employment, but beyond the period of the pandemic crisis, support founders, innovation and employment growth. We need policies and programs that are in line with their intention to encourage further private capital investment. “

For more information on the EY FinTech Australia Census 2021 Report, please visit: ey.com/FintechAust2021..



Australia’s fintech sector creates jobs, raises funds and looks to overseas markets

Source link Australia’s fintech sector creates jobs, raises funds and looks to overseas markets

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