What will happen to Australia’s FinTech as it breaks out of various blockades in New South Wales and Victoria in the final quarter of 2021?
According to Glen Frost, founder of the FinTech Awards and FinTech Summit, 2021 will be written as a turning point for FinTech and 2022 will be set for “extreme growth.”
“There are five major trends that have emerged this year, and when we put them together, we can see that FinTech reached a turning point in 2021 and is set for a’new era’of growth after 2022.” Said Frost.
“The turning point can be measured by financial indicators as much as psychological emotions,” Frost added.
The main trends driving the turning point in 2021 are:
- Acquisitions surged in 2021. Three examples here are trying to buy into the international appeal of Australian FinTech with an established brand and fast-growing customer base, and the advanced technology developed by Australian FinTech. Shows both local players. US NASDAQ acquires ASX listed Afterpay by Square (Nick Molnar, co-founder of Afterpay, Square is called “perfect partner”), ASX listed Bendigo & Adelaide Bank acquires Ferocia (Up App), ASX listed National Australia Bank is neo Acquired-Bank 86: 400.
- FinTech-Banking Partnership: Afterpay and Westpac: Afterpay is Westpac’s first partner in the new digital bank-as-a-service platform, enabling Westpac to work with leading companies to deliver innovative banking services. Athena and Newcastle Permanent Building Society: Athena has created a $ 1.6 billion mortgage and secured an additional $ 25 billion over the next seven years at NPBS, Tic: Toc & Bendigo & Adelaide Bank: Fintech Lender Tic: Toc. After expanding the partnership between Bendigo and Adelaide Bank.
- Investor Financing Boom: Three examples here are Australian mortgage fintech Athena Home Loans raising $ 90 million entirely from local backers in May 2021. Judo Bank will raise $ 174 million and will provide Judo with a total of $ 1.2 billion in cumulative funding. VoltBank has raised $ 33 million. Covid and Lockdown influenced the reputation of some FinTech / Neobanks, and Seed / Angel stage FinTech was hit hard by the inability to meet potential new investors in person, but Athena. FinTech such as Jude Bank and Jude Bank have seen a surge in reputation with established investors and proven track record.
- New legislation to boost FinTech: In 2021, we saw the role of a new fintech service from the CDR method provided two years ago. FinTech and Banks are currently experimenting with Open Banking services, many of which are expected to go live in 2022.
- A new trend is embedded finance. In particular, non-financial brands that white label fintech products or create their own financial services – eg – Woolworths spin out “WPay” – Woolworths listed on ASX to offer a payment platform as a service Launched Wpay in – This means that WPay will offer a new service directly to retailers or with partners. Embedded finance is a huge growth area that began in 2021 and will grow rapidly in 2022. “I expect cars (automobile, truck and motorcycle finance), home refurbishment and travel to lead in embedded finance,” Frost said.
These trends are covered by 8NS Annual FinTech Summit 2021: www.fintechsummit.com.au
The turning point in 2021. FinTech has entered a new era, says Frost
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