Australia’s Fintech Sector Shows Promising Growth

Published 6 months ago

Australia’s fintech sector, valued at AUD 4 billion, continues to make its mark in the global market, ranking sixth worldwide and second within the Asia-Pacific region. Over the past five years, the country has seen the launch of 800 fintech startups, paving the way for significant disruption within the traditional financial services sector.

Benchmarking Australia’s Fintech Industry

In a first-of-its-kind report by JLL, Australia’s fintech sector was compared to those in other countries, both globally and within the Asia-Pacific region. The sector’s substantial growth is evident, with the market size increasing from AUD 250 million in 2015 to AUD 4 billion in 2022. The rise in new startup formation has surged five-fold over the last five years, with approximately 800 fintech companies now operating within Australia.

Impact of Private Capital Markets and Technology Adoption

The industry’s growth has been spurred on by a steady increase in investments from private capital markets and the broad adoption of technology during the COVID-19 pandemic. This has led to the formation of new fintech companies and has opened up further growth opportunities for existing players in the sector.

Fintech Occupancy in Australian Cities

According to JLL Research data, Sydney CBD holds the largest office footprint for fintech companies in Australia, accounting for 57% of the nation’s total. In comparison, Melbourne CBD accounts for 24% and Brisbane 11%. Both Sydney and Melbourne are key markets due to the presence of global fintech companies. However, as the sector continues to evolve globally, prospective fintech occupiers in Brisbane, Adelaide, and Perth may start exploring these CBDs as suitable locations for their operations.

Future Growth of the Fintech Sector

JLL predicts a strong growth trajectory for the Australian fintech sector over the medium to long term. This is further supported by untapped capital in private markets that are looking to invest an estimated AUD 40 billion in the sector. As a result, Australia’s fintech sector appears primed for continued growth and disruption of traditional financial markets.